Permanent establishment definition determines taxable presence under DTAA, covering fixed places, dependent agents and entertainers exceptions.

Permanent establishment is a fixed place of business where an enterprise's business is carried on, including management offices, branches, factories, extraction sites, farms and construction projects exceeding six months; preparatory or auxiliary activities such as storage, display, stock maintenance for processing, purchasing, information collection, advertising or scientific research do not constitute a permanent establishment. A person habitually concluding contracts or maintaining stock for regular order fulfilment on behalf of an enterprise will create a permanent establishment unless he is an independent agent acting in the ordinary course of business; an agent devoted almost wholly to one enterprise is not independent. Control between related companies alone does not create a permanent establishment, and services by public entertainers create a permanent establishment unless substantially publicly funded.

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