Income Tax : xplains how the functions performed by an Indian subsidiary are tested under Article 5 to determine whether a foreign company form...
Income Tax : The analysis explains how activities of a liaison office can trigger PE exposure despite regulatory approval. Taxability depends o...
Income Tax : Highlights how the Court ruled that consistent operational control and strategic oversight in India can establish a Fixed Place PE...
Income Tax : Supreme Court rules that foreign taxpayers without current projects or PE in India can still set off expenses and depreciation aga...
Goods and Services Tax : A practical guide on how India taxes imported digital services, explaining GST under RCM and when TDS applies. Key takeaway: Buyer...
Income Tax : The OECD Committee on Fiscal Affairs has proposed important and far-reaching changes to the Commentary on Article 5 (Permanent Est...
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 dispu...
Income Tax : A Double Taxation Avoidance Agreement was signed between India and Tajikistan today, i.e. 20th November, 2008. The Agreement was s...
Income Tax : The Tribunal ruled that a Dependent Agent PE arises only if agents habitually conclude contracts or secure orders on behalf of the...
Income Tax : The Supreme Court declined to interfere where courts below found no permanent establishment in India due to offshore execution of ...
Income Tax : The High Court upheld the Tribunal’s finding that no permanent establishment existed as contracts were executed and completed ou...
Income Tax : The High Court set aside a 10% TDS certificate issued without recording how the payments were taxable. The ruling stresses that Se...
Income Tax : Authorities taxed refund interest as business income by linking it to earlier PE years. The Tribunal ruled that without a PE in th...
Income Tax : CBDT notifies Section 206C (1G) of Income Tax Act shall not apply to a person (being a buyer) who is a non-resident & who does not...
Income Tax : Public Consultation on the proposal for amendment of Rules for Profit attribution to Permanent (PE) Establishment invited by CBDT....
The Tribunal ruled that a Dependent Agent PE arises only if agents habitually conclude contracts or secure orders on behalf of the foreign enterprise. Since no such evidence existed, the foreign company’s income from software sales was not taxable in India.
xplains how the functions performed by an Indian subsidiary are tested under Article 5 to determine whether a foreign company forms a PE in India.
The Supreme Court declined to interfere where courts below found no permanent establishment in India due to offshore execution of contracts. The ruling confirms that profit attribution fails without a PE.
The High Court upheld the Tribunal’s finding that no permanent establishment existed as contracts were executed and completed outside India. The ruling confirms that offshore supply alone does not create tax liability.
The High Court set aside a 10% TDS certificate issued without recording how the payments were taxable. The ruling stresses that Section 197 orders must be reasoned and cannot ignore binding precedents.
Authorities taxed refund interest as business income by linking it to earlier PE years. The Tribunal ruled that without a PE in the year of receipt, the income cannot be treated as effectively connected and must enjoy DTAA relief.
The analysis explains how activities of a liaison office can trigger PE exposure despite regulatory approval. Taxability depends on substance, not designation, under treaty principles.
The court examined whether withholding tax could be imposed solely on the basis of an alleged virtual service permanent establishment. It ruled that such a concept is not recognised under the DTAA and remanded the matter for fresh consideration.
The Tribunal ruled that offshore supply receipts could not be taxed as the Revenue failed to establish any Permanent Establishment. It confirms that FOB-based offshore execution shields non-residents from Indian taxation.
Highlights how the Court ruled that consistent operational control and strategic oversight in India can establish a Fixed Place PE under the DTAA, even without exclusive offices. Key takeaway: substance and economic activity override formal ownership.
