Deputation of personnel do not results in a permanent establishment in India: ITAT Mumbai

In a recent ruling in the case of  Tekmark Global Solutions LLC (Taxpayer) [[2010] 3 taxmann 38 (Mum. – ITAT)] the Mumbai Income Tax Appellate Tribunal (ITAT) held that as the deputed personnel do not work under the control and supervision of the Taxpayer, such personnel do not create a PE for the Taxpayer in India. Background and facts of the case The Taxpayer had entered into an arrangement with an Indian company for deputation of personnel on a hire-out basis. It was agreed that the deputed personnel would work under the supervision and control of the Indian company. The deputed per...