Subsidiary Company held as having Permanent Establishment in India

Daikin Industries Ltd. Vs ACIT (ITAT Delhi)

Introduction:

Generally, it is seen in the Tax Treaties and Model Tax Conventions that, the Article 5 Clause 7 provides for that an entity which is resident of contracting state who is controlled by another entity who is resident of other contracting state will not be considered as PE in other contracting state.

Relevant Extracts from India – USA Treaty…………

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