permanent establishment

Preparatory & Auxiliary activities in Permanent Establishment: How does India cope with the dearth in determining provisions?

Income Tax - With the incessant global growth, the relevance of Permanent Establishment (PE) in international taxation has become paramount. In simpler terms, the expression ‘Permanent Establishment’ means a fixed place of business through which the business of an enterprise is wholly or partly carried on....

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Are you creating a Dependent PE taxable in India by appointing a sales agent in India ?

Income Tax - A foreign entity in Japan is appointing an sales agent in India to market and sell their products. They are not setting up an Indian entity, not hiring an employee in India but only appointing a full time agent in India. Can such a person be construed as a permanent establishment (PE) for the Japanese […]...

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Clarity finally delivered on long standing issue of Permanent Establishment exposure for Liaison Offices in India!

Income Tax - Multi-National Companies (‘MNCs’) are allowed to set up their presence in India subject to the Foreign Direct Investment policy and other relevant regulations. One such presence that MNCs typically try to build is in the form of a liaison office (‘LO’) in India. Such offices are set up by foreign enterprises to understand the Indi...

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An approach to Virtual Permanent Establishment (VPE) & Taxation of Electronic Commerce Transactions

Income Tax - According to thisVirtual Permanent Establishment (VPE) theory, it is proposed that the taxing nexus for electronic commerce should be “the continuous commercially significant conduit of business activity”, rather than the fixed place of business. The virtual PE approach applies to the jurisdictional criterion for source-based taxation...

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International Tax Perspective – Part I Permanent Establishments (PE)

Income Tax - What are Permanent Establishments? The most important issue in the treaty based international fiscal law is the concept of Permanent Establishment (PE). All the models of conventions namely:...

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OECD releases a discussion draft on the definition of 'permanent establishment' in the OECD Model Tax Convention; CBDT invite Comments

Income Tax - The OECD Committee on Fiscal Affairs has proposed important and far-reaching changes to the Commentary on Article 5 (Permanent Establishment) of the OECD Model Tax Convention. As these changes will have an impact on India, the CBDT has, vide letter dated 8.11.2011, invited comments on the proposals before finalizing its view and sending ...

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MNC preferring dispute resolution panel to settle their disputes with Income tax department

Income Tax - A host of companies from Mumbai, said to be 367 in number and mostly multinational in nature, have moved the recently set up dispute resolution panel (DRP) to resolve issues related to cross-border taxation. An official in the I-T department said except two, all of the companies have chosen DRP instead of the conventional channel of appea...

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Double Taxation Avoidance Agreement Signed Between India and Tajikistan

Income Tax - A Double Taxation Avoidance Agreement was signed between India and Tajikistan today, i.e. 20th November, 2008. The Agreement was signed by Mr. Narendra Bahadur Singh,Chairman, Central Board of Direct Taxes on behalf of Government of India and by Mr. Norinov Jamshed Nurmahmadovich, Deputy Minister of Finance of the Republic of Tajikistan o...

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Mitsui India Pvt. Ltd (MIPL) is not a DAPE of Mitsui & Co. Japan

ACIT Vs Mitsui & Co. Ltd. (ITAT Delhi) - ACIT Vs Mitsui & Co. Ltd. (ITAT Delhi) The AO asked the assessee to explain why Mitsui India Pvt. Ltd (MIPL) should not be treated Dependant Agent Permanent Establishment (DAPE) in India and also why the assessment should not be completed as per the preceding assessment year since the facts rema...

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MIPL is not a Dependent Agency Permanent Establishment of Mitsui & Co.

Mitsui & Co. Ltd. Vs DDIT (International Taxation) (ITAT Delhi) - Mitsui & Co. Ltd. Vs DDIT (International Taxation) (ITAT Delhi) Since the lower authorities following the orders of the preceding years have held that M/s. Mitsui & Co. Ltd. has been constituted as Dependent Agent PE of the assessee company in India, therefore, following the consistent decis...

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Office established merely for communication is not a PE under India-Korea DTAA

Director of Income Tax Vs Vs Samsung Heavy Industries Co. Ltd. (Supreme Court) - whether the office which is established merely for the sake of communication is covered under the character of Permanent Establishment (PE) under India-Korea DTAA?...

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Notional Interest on loan to AE assessable as income, if assessee having PE in India

Sabre Asia Pacific Pte. Ltd. Vs DCIT (ITAT Mumbai) - Whether notional interest income on the loan (interest-free) that was advanced by the assessee to its AE would be assessable as the income of the assessee which has a business connection or Permanent Establishment (PE) in India?...

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YRIPL & YRMPL do not constitute DAPE or PE of Yum! Restaurants in India

DDIT Vs Yum! Restaurants (Asia) Pte. Ltd. (ITAT Delhi) - The issue which is arising in the present appeal is whether there is DAPE. The Assessing Officer has alleged the existence of DAPE on account of alleged marketing activities undertaken by Indian entity on behalf of the assessee company....

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Amendment of Rules for Profit attribution to PE: CBDT invites comment

F. No. 500/33/2017-FTD.I - (18/04/2019) - Public Consultation on the proposal for amendment of Rules for Profit attribution to Permanent (PE) Establishment invited by CBDT. Under Article 7 in the Indian treaties, profits are to be attributed to the PE as if it were a distinct and separate entity on the basis of the accounts of the PE and wh...

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permanent establishment’s Popular Posts

Recent Posts in "permanent establishment"

Mitsui India Pvt. Ltd (MIPL) is not a DAPE of Mitsui & Co. Japan

ACIT Vs Mitsui & Co. Ltd. (ITAT Delhi)

ACIT Vs Mitsui & Co. Ltd. (ITAT Delhi) The AO asked the assessee to explain why Mitsui India Pvt. Ltd (MIPL) should not be treated Dependant Agent Permanent Establishment (DAPE) in India and also why the assessment should not be completed as per the preceding assessment year since the facts remain the same. Rejecting the […]...

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MIPL is not a Dependent Agency Permanent Establishment of Mitsui & Co.

Mitsui & Co. Ltd. Vs DDIT (International Taxation) (ITAT Delhi)

Mitsui & Co. Ltd. Vs DDIT (International Taxation) (ITAT Delhi) Since the lower authorities following the orders of the preceding years have held that M/s. Mitsui & Co. Ltd. has been constituted as Dependent Agent PE of the assessee company in India, therefore, following the consistent decisions of the Tribunal in assessee’s own...

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Preparatory & Auxiliary activities in Permanent Establishment: How does India cope with the dearth in determining provisions?

With the incessant global growth, the relevance of Permanent Establishment (PE) in international taxation has become paramount. In simpler terms, the expression ‘Permanent Establishment’ means a fixed place of business through which the business of an enterprise is wholly or partly carried on....

Read More
Posted Under: Income Tax |

Office established merely for communication is not a PE under India-Korea DTAA

Director of Income Tax Vs Vs Samsung Heavy Industries Co. Ltd. (Supreme Court)

whether the office which is established merely for the sake of communication is covered under the character of Permanent Establishment (PE) under India-Korea DTAA?...

Read More

Notional Interest on loan to AE assessable as income, if assessee having PE in India

Sabre Asia Pacific Pte. Ltd. Vs DCIT (ITAT Mumbai)

Whether notional interest income on the loan (interest-free) that was advanced by the assessee to its AE would be assessable as the income of the assessee which has a business connection or Permanent Establishment (PE) in India?...

Read More

YRIPL & YRMPL do not constitute DAPE or PE of Yum! Restaurants in India

DDIT Vs Yum! Restaurants (Asia) Pte. Ltd. (ITAT Delhi)

The issue which is arising in the present appeal is whether there is DAPE. The Assessing Officer has alleged the existence of DAPE on account of alleged marketing activities undertaken by Indian entity on behalf of the assessee company....

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If Agent paid remuneration on ALP & taxed in India no further taxation in the hands of DAPE

OT Africa Line Limited (now known as Delmas UK Limited) Vs DDIT-nternational Taxation (ITAT Mumbai)

Whether the agent in India was a ‘Dependent Agent’ constituting a permanent establishment (PE) and the appellant was, therefore, liable to be taxed as per India UK DTAA?...

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Are you creating a Dependent PE taxable in India by appointing a sales agent in India ?

A foreign entity in Japan is appointing an sales agent in India to market and sell their products. They are not setting up an Indian entity, not hiring an employee in India but only appointing a full time agent in India. Can such a person be construed as a permanent establishment (PE) for the Japanese […]...

Read More
Posted Under: Income Tax |

Clarity finally delivered on long standing issue of Permanent Establishment exposure for Liaison Offices in India!

Multi-National Companies (‘MNCs’) are allowed to set up their presence in India subject to the Foreign Direct Investment policy and other relevant regulations. One such presence that MNCs typically try to build is in the form of a liaison office (‘LO’) in India. Such offices are set up by foreign enterprises to understand the Indi...

Read More
Posted Under: Income Tax |

An approach to Virtual Permanent Establishment (VPE) & Taxation of Electronic Commerce Transactions

According to thisVirtual Permanent Establishment (VPE) theory, it is proposed that the taxing nexus for electronic commerce should be “the continuous commercially significant conduit of business activity”, rather than the fixed place of business. The virtual PE approach applies to the jurisdictional criterion for source-based taxation...

Read More
Posted Under: Income Tax |

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