Income Tax : The article explains how India has broadened Permanent Establishment and Business Connection concepts after BEPS reforms. It highl...
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...
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 Supreme Court dismissed SLPs and upheld the High Court’s finding that reassessment notices lacked tangible material. The rul...
Income Tax : The Supreme Court declined to condone delay, thereby upholding the High Court’s conclusion that the liaison office did not const...
Income Tax : The judgment confirms that income from offshore equipment supply is not taxable where transactions occur outside India. The liaiso...
Income Tax : The Court set aside Section 148 notices after finding no tangible evidence supporting the existence of a Permanent Establishment. ...
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 : 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....
We are of the considered view that the appellant has no business connection in India in respect of supply of GSM System by the appellant to cellular operators in India and further, there is no PE in any form in India in the captioned Assessment Years and therefore, the question of attribution of profit does not arise at all.
ESPN Star Sports Mauritius Vs DCIT (ITAT Delhi) Facts- The appellant is a partnership firm established under Mauritius Law. It is engaged in the business of selling advertisement time and programme sponsorship from Mauritius in connection with the programming via non-standard television on ESPN, Star Sports and Star Cricket programming services. During the year under […]
In present facts of the case, the Hon’ble Tribunal relied upon the previous Judgments passed in the assesse own case and have observed that agents of the assessee did not have the necessary authority to conclude the contracts of the assessee and, on that premise, it was held that there is no agency PE of assessee in India and therefore Assessee was not taxable in India.
Mobileum Inc Vs DCIT (ITAT Mumbai) since transactions between the assessee and its AE have been found at arm’s length prices no further income chargeable to tax in India can be said to be attributable for the PE of the assessee. FULL TEXT OF THE ORDER OF ITAT MUMBAI This appeal by the Assessee is […]
1. Concept of PE – Introduction 1. PE is primarily a concept relevant from tax treaty perspective. Under a treaty regime, business profits are ordinarily taxable in the country of residence except when there exists a PE in source country. 2. Article 5(1) U.N. Model Tax Convention and OECD Model Convention– Basic rule PE “a […]
Morgan Stanley Mauritius Co Ltd Vs DCIT (ITAT Mumbai) The reasoning given by the DRP is ex facie incorrect inasmuch as the SCB-India, being a permanent establishment of a company fiscally domiciled in the United Kingdom, and is not a taxable unit in India, and the taxability is in the name of its general enterprise- […]
International Air Transport Association (Canada) Vs ACIT (ITAT Mumbai) At this stage, we may herein observe that as in the present case before us, in the case of Delmas France (supra) also there was no finding of the lower authorities that the transactions between the principal and agent were done in arm’s length conditions. Under […]
Income earned by assessee from sale of software, either directly to the customers in India or through Distributors or Resellers constituted its business income and not the Royalty income. As admittedly assessee did not have any Permanent Establishment in India, such income will not magnetize Indian taxation.
Explore the tax implications as Sandvik AB challenges the characterization of Training fees, testing DTAA provisions, and its application in the ITAT Pune decision.
Union of India Vs U.A.E. Exchange Centre (Supreme Court) Respondent was not carrying on any business activity in India as such, but only dispensing with the remittances by downloading information from the main server of respondent in UAE and printing cheques/drafts drawn on the banks in India as per the instructions given by the NRI […]
