Taxability of Consultancy Income under India–UAE DTAA vis-à-vis SEP

Vijay Mariappan Austin Prakash Vs ACIT (International Taxation) (ITAT Visakhapatnam) Taxability of Consultancy Income under India–UAE DTAA vis-à-vis Significant Economic Presence (SEP) In this decision, the Income Tax Appellate Tribunal, Visakhapatnam Bench examined whether consultancy income earned by a UAE tax resident from an Indian company could be taxed in India by invoking the domestic law concept of Significant Economic Presence (SEP). While the Tribunal accepted that the SEP threshold under section 9(1)(i) was crossed, it emphasized that SEP only creates a nexus and does not automat...