Transfer pricing comparables and operating income principles applied to software development services, with exclusions, inclusions, and tax credit ver...
Transfer pricing on performance guarantees and overdue receivables deleted where warranty obligations were embedded and working capital adjustment alr...
The article addresses whether offshore supply receipts give rise to a Permanent Establishment in India, holding that contract duration alone cannot establish a PE; the decisive inquiry is the contract characterisation-supply of equipment versus provision of services-and the substantive allocation of ownership, risk and duties. Applying that principle, and noting absence of AO evidence showing retention of ownership/risks or a PE presence, receipts from machinery supplied and dispatched from abroad with limited installation obligations were not attributable to a PE in India, so they are not taxable in India for the year under review.
The article addresses whether offshore supply receipts give rise to a Permanent Establishment in India, holding that contract duration alone cannot establish a PE; the decisive inquiry is the contract characterisation-supply of equipment versus provision of services-and the substantive allocation of ownership, risk and duties. Applying that principle, and noting absence of AO evidence showing retention of ownership/risks or a PE presence, receipts from machinery supplied and dispatched from abroad with limited installation obligations were not attributable to a PE in India, so they are not taxable in India for the year under review.
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