Business Profits of Permanent Establishment (PE) not taxable on gross basis as Fees for Technical Services

Advertisement Facts The assessee, a division of Technical Resources Prt. Ltd. Australia, had entered into contracts with Rio Tinto India Pvt. Ltd. (“RTIPL”) for evaluation of coal deposits in Maharashtra and Orissa and for corresponding feasibility studies for transporting the same. For this purpose, the assessee had established a project office in India pursuant to approvals granted by the Reserve Bank of India (“RBI”).The project office of the assessee in India constituted a PE of the assessee in India as per Article 5 (See note-1 below)  of the India-Australia Double Taxation A...