ITAT lay down principles on ‘splitting of turnkey contracts’, role of PE and taxability of profits from offshore supply

Samsung Heavy Industries Co. Ltd. Vs ADIT (International Taxation)- It is held that the turnkey contract is not divisible and therefore, the offshore supply and offshore services can be attributed to the Indian permanent establishment; as the project office was opened for coordination and execution of project, the same is held to be a fixed place PE. Whether assessee’s arguments that all the activities carried out by the project office till the completion of fabrication work were of preparatory and auxiliary in nature can be accepted? The contention of the assessee that, no PE would come in...