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...
The central issue was whether a "virtual service permanent establishment" exists under Article 5(2)(k)/5(6) of the DTAA where no personnel are physically present in India. Relying on treaty-construction principles and Clifford Chance, the court held the DTAA must be strictly construed; Article 5's phrase "within a Contracting State" carries territorial connotation and contemplates physical presence of employees/personnel. Consequently, a virtual service PE not expressly provided by the DTAA or domestic law cannot be recognised, the Revenue's finding was rejected, the impugned NIL-withholding certificate and order were set aside and the matter remanded to the AO for fresh decision within two weeks - HC
The central issue was whether a "virtual service permanent establishment" exists under Article 5(2)(k)/5(6) of the DTAA where no personnel are physically present in India. Relying on treaty-construction principles and Clifford Chance, the court held the DTAA must be strictly construed; Article 5's phrase "within a Contracting State" carries territorial connotation and contemplates physical presence of employees/personnel. Consequently, a virtual service PE not expressly provided by the DTAA or domestic law cannot be recognised, the Revenue's finding was rejected, the impugned NIL-withholding certificate and order were set aside and the matter remanded to the AO for fresh decision within two weeks - HC
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