Permanent establishment rules govern when cross-border business profits may be taxed in the other State, with specified source allocations. Convention between India and Austria allocates taxing rights for income taxes and defines residency and permanent establishment. Business profits are taxable in the other State only when attributable to a permanent establishment there, determined on an arm's-length basis or by reasonable estimate. Specific income categories-royalties, interest, dividends, aircraft operations, immovable property income and capital gains-are allocated to source or situs as specified. The treaty requires exchange of tax information, preserves domestic assessment laws except where modified, and provides a mutual agreement procedure to resolve double taxation and interpretive disputes.
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 rules govern when cross-border business profits may be taxed in the other State, with specified source allocations.
Convention between India and Austria allocates taxing rights for income taxes and defines residency and permanent establishment. Business profits are taxable in the other State only when attributable to a permanent establishment there, determined on an arm's-length basis or by reasonable estimate. Specific income categories-royalties, interest, dividends, aircraft operations, immovable property income and capital gains-are allocated to source or situs as specified. The treaty requires exchange of tax information, preserves domestic assessment laws except where modified, and provides a mutual agreement procedure to resolve double taxation and interpretive disputes.
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