Case Law Details
Case Name : Rolls Royce Singapore Pvt. Ltd. Vs ADIT (Delhi High Court)
Related Assessment Year :
Courts :
All High Courts Delhi High Court
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Rolls Royce Singapore Pvt. Ltd. Vs ADIT (Delhi High Court)- It is critical to examine if the agent has carried out work wholly or almost wholly for the other enterprise, to determine if he is an independent agent under the India- Singapore Double Taxation Avoidance Agreement (DTAA). The attribution of profit to the Permanent Establishment (PE) needs to be done on the basis of a Transfer Pricing Analysis.
Attribution of profit to a fixed place PE is based on the functional and factual analysis. Hence, if the assessee does not bring out such analysis in detail, he would be burdened with the a...
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I find this case of profits attributable to ‘Dependent Agent Permanent Establishment’ Taxable in India fascinating. The case centres around the legal status of ANR in India and Singapore. Many questions still remain unanswered and it seems incredible that the Singapore Company could involve itself in such a web of complicated dealings. Is ANR an employee, physically sitting in the Singapore Company since 2002? Did ANR, for the ONGC and GAIL contracts, simply take 5% commission with order placement then simply disappear on a European vacation for 6 months and provide no assistance in India whatsoever throughout the duration of the contract, whilst pretending to have Permanent Establishment in India? What evidence is there that “double dipping” against the Singapore Company didn’t also take place, at the expense of the shareholders of the Singapore Company?