Back office operations and software development services carried out by an Indian subsidiary is permanent establishment of Foreign Company

Court- Delhi Tribunal Citation: e Funds Corporation Vs. ADIT] (2010-TII-165-ITAT-DEL-INTL Brief : The back office operations and software development services carried out by an Indian subsidiary are held to be a fixed place permanent establishment of a Foreign Company. It has also been held that the contract entered into by the foreign company with its clients for providing certain IT-enabled services and then assigning or sub-contracting the same contract to Indian Subsidiary for execution can be said to constitute a business connection in India and profits attributed to the permanent establ...