Thursday, 17 May 2012

Under Article 7 of the DTAA, foreign PE profits may be taxed in India

Telecommunications Consultants India Ltd vs. ACIT (ITAT Delhi)


The assessee, an Indian PSU company, earned Rs. 10.68 crores from foreign projects in Oman etc. The assessee claimed that it had a “permanent establishment” (PE) in those countries and that in accordance with the DTAA, only the source country was entitled to tax the profits and India was not authorized to tax the foreign PE profits. HELD by the Tribunal rejecting the plea:

No comments:

Commission Paid to Overseas Sourcing Agents Not Taxable as FTS; No Witholding Obligation

  Delhi ITAT held that commission paid by an exporter to an overseas sourcing agent for procurement of export orders and follow-up on realis...