Article 27 India-US DTAA — the law in short
What the courts have decided on section Article 27 India-US DTAA, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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ADIT v E-Funds IT Solution Inc
Supreme CourtHelps taxpayer
We outsource back-office work to our Indian subsidiary. Does that give us a permanent establishment in India?
No, not by itself. The Revenue must prove that a fixed place in India was at the disposal of the foreign company and that the foreign company carried on its own business through it. Close association between parent and subsidiary, and the fact that the Indian company depends on the group for its work, do not answer that question, and the functions-assets-risks analysis borrowed from transfer pricing is not the test for whether a fixed place permanent establishment exists.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.