Permanent establishment defines taxable nexus for fixed places and dependent agents under the DTAA framework. The Article defines permanent establishment as a fixed place of business with enumerated examples and treats construction sites and sustained service provision as creating a permanent establishment when they exceed specified durations. It excludes preparatory or auxiliary activities such as storage, display, delivery, maintaining stock for processing, purchasing, or information collection. Dependent agents with contract authority, agents maintaining stock for regular delivery, or those habitually securing orders attribute a permanent establishment to the enterprise, while independent agents acting in the ordinary course of business do not, except where their activities are devoted mainly to the enterprise or commercial relations are non-arm's-length. Insurance enterprises collecting premiums or insuring risks via non-independent persons are similarly attributed a permanent establishment.
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 defines taxable nexus for fixed places and dependent agents under the DTAA framework.
The Article defines permanent establishment as a fixed place of business with enumerated examples and treats construction sites and sustained service provision as creating a permanent establishment when they exceed specified durations. It excludes preparatory or auxiliary activities such as storage, display, delivery, maintaining stock for processing, purchasing, or information collection. Dependent agents with contract authority, agents maintaining stock for regular delivery, or those habitually securing orders attribute a permanent establishment to the enterprise, while independent agents acting in the ordinary course of business do not, except where their activities are devoted mainly to the enterprise or commercial relations are non-arm's-length. Insurance enterprises collecting premiums or insuring risks via non-independent persons are similarly attributed a permanent establishment.
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