Request-driven road restoration attracts reverse-charge GST, not governmental-function treatment or compensatory-damages status for business recipient...
Road restoration charges for commercial pipeline works are taxable Government services, with reverse charge liability and no public-function exemption...
Model-wise import cap monitoring cannot justify withholding used multifunction machines where all-India tracking is absent and full security is furnis...
ITAT ruled against establishing a dependent agent Permanent Establishment (PE) of foreign entity (Japan) through its Indian subsidiary under India-Japan DTAA Article 5. Indian subsidiary functioned solely as a communication channel between Japanese parent and Indian customers, without authority to conclude contracts or maintain inventory. AO's application of Rule 10 with Section 44BB to estimate 10% deemed profits was rejected. ITAT found tax authorities' conclusions were based on assumptions without examining agency agreement or conducting independent inquiry. Despite trading business continuity, mere existence of business flow insufficient to establish principal-agent relationship. Clear factual evidence demonstrated absence of PE, negating need for further verification of contractual relationship between entities as directed in previous years.
ITAT ruled against establishing a dependent agent Permanent Establishment (PE) of foreign entity (Japan) through its Indian subsidiary under India-Japan DTAA Article 5. Indian subsidiary functioned solely as a communication channel between Japanese parent and Indian customers, without authority to conclude contracts or maintain inventory. AO's application of Rule 10 with Section 44BB to estimate 10% deemed profits was rejected. ITAT found tax authorities' conclusions were based on assumptions without examining agency agreement or conducting independent inquiry. Despite trading business continuity, mere existence of business flow insufficient to establish principal-agent relationship. Clear factual evidence demonstrated absence of PE, negating need for further verification of contractual relationship between entities as directed in previous years.
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TaxTMI 
TaxTMI 
of 4916 
