Permanent establishment defined: fixed place or dependent agent creates tax nexus under DTAA, subject to specified exclusions. Permanent establishment is a fixed place of business including management, branch, office, factory, workshop, resource extraction sites, warehouses providing storage for others, installations for exploration or exploitation, and construction projects exceeding six months; supplying services or hired plant used in mineral prospecting also creates a permanent establishment. Exclusions cover solely preparatory or auxiliary facilities (storage, display, purchasing, information collection, processing by others, advertising, occasional fairs) unless another non excluded fixed place exists. A person habitually concluding contracts, maintaining stock for regular delivery, or securing orders on behalf of an enterprise creates a permanent establishment, while independent agents acting in the ordinary course and mere control between related companies do not.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Permanent establishment defined: fixed place or dependent agent creates tax nexus under DTAA, subject to specified exclusions.
Permanent establishment is a fixed place of business including management, branch, office, factory, workshop, resource extraction sites, warehouses providing storage for others, installations for exploration or exploitation, and construction projects exceeding six months; supplying services or hired plant used in mineral prospecting also creates a permanent establishment. Exclusions cover solely preparatory or auxiliary facilities (storage, display, purchasing, information collection, processing by others, advertising, occasional fairs) unless another non excluded fixed place exists. A person habitually concluding contracts, maintaining stock for regular delivery, or securing orders on behalf of an enterprise creates a permanent establishment, while independent agents acting in the ordinary course and mere control between related companies do not.
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