Dependent-agent permanent establishment under Article 5(5)(i) of...

Dependent-agent permanent establishment under Article 5(5)(i) of the India-Switzerland DTAA requires evidence that the Indian associated enterprise had, and habitually exercised, authority to negotiate or conclude contracts on behalf of the foreign enterprise. Group affiliation, dependency and arm's-length remuneration do not independently establish that status. Contemporaneous emails, approval matrices and supplier contracts indicated that Indian personnel communicated pre-approved terms, performed liaison, account-management and administrative functions, and escalated non-approved proposals overseas. Essential commercial approvals remained outside India. The Indian enterprise therefore did not constitute a dependent agent permanent establishment, making proposed profit attribution academic; the appeal was partly allowed.