permanent establishment

Does constitution of “Service PE” entail physical presence of foreign personnel in host country?

Income Tax - Permanent Establishment (PE) is the fundamental criterion under the tax treaties for taxation of foreign company’s business income in India. A permanent establishment of a foreign company is typically regarded as a virtual extension or taxable presence of such foreign company in the host country, similar to that of an independent legal ...

Read More

Formula One…Whats the Game?

Income Tax - You would be aware that, recently Supreme Court upheld the decision of Delhi High Court in the case of Fomrula One that it does have Permanent Establishment [PE] in India....

Read More

Analysis of the word ‘Permanent Establishment’

Income Tax - The concept of Permanent Establishment is one of the most important concepts in International Taxation. The existence of a Permanent Establishment or otherwise, would in most cases determine the exposure to domestic tax liability in the country of source....

Read More

Withholding tax not required on payment to non-resident agents of artists in absence of a permanent establishment

Income Tax - In a recent ruling, the Mumbai Income-tax Appellate Tribunal (the Tribunal), in the case of Wizcraft International Entertainment Pvt. Ltd. (the assessee) held that commission paid by an entertainment event management firm in India to a UK based ...

Read More

Payments for reassembling and recommissioning of machinery not taxable

Income Tax - The ITAT held that the payments for services rendered with regard to reassembling and recommissioning of machinery in India under the Indian Tax Laws (ITL) and the India-Italy Double Taxation Avoidance Agreement (DTAA), would be excluded from fees for technical services (FTS) under the DTAA since the same were in the nature of business pr...

Read More

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 ...

Read More

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...

Read More

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...

Read More

Taxability of business done by NRI through Power of Attorney holder

Carpi Tech SA Vs ADIT (ITAT Chennai) - Assessee submitted that project receipt from Tanakpur Power Project of NHPC work is exempt from tax in India for the reason that assessee does not have continuous presence or 'business connection' or a permanent establishment in India....

Read More

Agent without authority to conclude contracts cannot be termed PE

Adobe Systems Incorporated Vs Assistant Director of Income Tax And Anr (Delhi High Court) - One of the necessary conditions for holding that an agent constitutes a PE of an enterprise is that the agent must have an authority to conclude contracts or should have been found to be habitually entering into or concluding contracts on behalf of the enterprise....

Read More

Even in a composite contract, off-shore profits cannot be assessed by dept. without showing its attribution to PE

Samsung Heavy Industries Co. Ltd. Vs The Director of Income-tax -1 (Uttarakhand High Court at Nainital) - Being a resident of Korea, appellant is governed by the Income-tax Laws applicable to the class of assessees as that of the appellant as prevalent in Korea. Therefore, it has a tax identity in Korea. In addition thereto, appellant has submitted to the jurisdiction of Indian Taxing Authorities by fu...

Read More

Taxpayer did not constitute a Construction PE under the DTAA as the contract carried on by the Taxpayer did not exceed the threshold period provided under the DTAA

The Commissioner of Income Tax Dehradun And another Vs M/s BKI/HAM v. o.f. (Uttarakhand High Court) - CIT vs. M/s BKI/HAM v.o.f. (Uttarakhand High Court)-Tribunal in the assessment order 1995-96 as well as the appellate authority in the assessment order 1994-95 have categorically given a finding of fact that the entire duration of the contract was from 27th December, 1993 till 26th June, 1994, i.e.,...

Read More

Consideration received under a composite contract for services which are ancillary to the main objective of providing a software user license held to be in the nature of Royalty

Re. Lanka Hydraulic Institute Limited (AAR Delhi) - Recently in the case of Lanka Hydraulic Institute Limited In AAR No. 874 of 2010 , the Authority for Advance Rulings (AAR) held that where the scope of work under a contract is primarily related to technology transfer by way of software along with ancillary services in the nature of field data colle...

Read More
Sorry No Post Found

Recent Posts in "permanent establishment"

Does constitution of “Service PE” entail physical presence of foreign personnel in host country?

Permanent Establishment (PE) is the fundamental criterion under the tax treaties for taxation of foreign company’s business income in India. A permanent establishment of a foreign company is typically regarded as a virtual extension or taxable presence of such foreign company in the host country, similar to that of an independent legal ...

Read More
Posted Under: Income Tax |

Formula One…Whats the Game?

You would be aware that, recently Supreme Court upheld the decision of Delhi High Court in the case of Fomrula One that it does have Permanent Establishment [PE] in India....

Read More
Posted Under: Income Tax |

Taxability of business done by NRI through Power of Attorney holder

Carpi Tech SA Vs ADIT (ITAT Chennai)

Assessee submitted that project receipt from Tanakpur Power Project of NHPC work is exempt from tax in India for the reason that assessee does not have continuous presence or 'business connection' or a permanent establishment in India....

Read More

Agent without authority to conclude contracts cannot be termed PE

Adobe Systems Incorporated Vs Assistant Director of Income Tax And Anr (Delhi High Court)

One of the necessary conditions for holding that an agent constitutes a PE of an enterprise is that the agent must have an authority to conclude contracts or should have been found to be habitually entering into or concluding contracts on behalf of the enterprise....

Read More

Even in a composite contract, off-shore profits cannot be assessed by dept. without showing its attribution to PE

Samsung Heavy Industries Co. Ltd. Vs The Director of Income-tax -1 (Uttarakhand High Court at Nainital)

Being a resident of Korea, appellant is governed by the Income-tax Laws applicable to the class of assessees as that of the appellant as prevalent in Korea. Therefore, it has a tax identity in Korea. In addition thereto, appellant has submitted to the jurisdiction of Indian Taxing Authorities by furnishing return of income and, thereby, ...

Read More

Analysis of the word ‘Permanent Establishment’

The concept of Permanent Establishment is one of the most important concepts in International Taxation. The existence of a Permanent Establishment or otherwise, would in most cases determine the exposure to domestic tax liability in the country of source....

Read More
Posted Under: Income Tax |

Taxpayer did not constitute a Construction PE under the DTAA as the contract carried on by the Taxpayer did not exceed the threshold period provided under the DTAA

The Commissioner of Income Tax Dehradun And another Vs M/s BKI/HAM v. o.f. (Uttarakhand High Court)

CIT vs. M/s BKI/HAM v.o.f. (Uttarakhand High Court)-Tribunal in the assessment order 1995-96 as well as the appellate authority in the assessment order 1994-95 have categorically given a finding of fact that the entire duration of the contract was from 27th December, 1993 till 26th June, 1994, i.e., less than six months. Article 5 (3) of ...

Read More

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

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 ...

Read More
Posted Under: Income Tax |

Consideration received under a composite contract for services which are ancillary to the main objective of providing a software user license held to be in the nature of Royalty

Re. Lanka Hydraulic Institute Limited (AAR Delhi)

Recently in the case of Lanka Hydraulic Institute Limited In AAR No. 874 of 2010 , the Authority for Advance Rulings (AAR) held that where the scope of work under a contract is primarily related to technology transfer by way of software along with ancillary services in the nature of field data collection/mathematical model studies, the co...

Read More

Liaison Office (LO) involved merely in purchasing activity is not a Permanent Establishment (PE)

ADIT (IT) Vs Fabrikant & Sons Ltd. (Appeal Nos. 4657 to 4660 and 3342)

The Tribunal accepted most of the contentions of the assessee. The ruling assumes significance since it has held that selection of right goods and negotiation of price as per the instructions of the Head Office though a part of the purchasing activit...

Read More
Posted Under: Income Tax |
Page 1 of 712345...Last »

Browse All Categories

CA, CS, CMA (3,484)
Company Law (3,412)
Custom Duty (6,610)
DGFT (3,449)
Excise Duty (4,043)
Fema / RBI (3,252)
Finance (3,456)
Income Tax (25,036)
SEBI (2,736)
Service Tax (3,281)

Search Posts by Date

September 2017
M T W T F S S
« Aug    
 123
45678910
11121314151617
18192021222324
252627282930