https://www.taxtmi.com/caselaws?id=119323 Where a tax treaty preserves domestic law except to the extent expressly displaced, the profits of a permanent establishment in India remain subject to Indian computation rules, including the restriction on head office expenses under section 44C. Liaison office expenses said to relate only to Indian operations were also not allowed outside that restriction, because their allowance depended on factual allocation and the amended statutory position. The non-discrimination argument against the higher tax rate for a foreign company failed, as the comparison with a co-operative bank was not apt and section 90 clarifies that a higher rate for a foreign company is not discriminatory. The rectification applications were therefore rejected. en-us Fri, 27 Jul 2007 00:00:00 +0530 Tue, 10 Jul 2012 13:20:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=119323 Where a tax treaty preserves domestic law except to the extent expressly displaced, the profits of a permanent establishment in India remain subject to Indian computation rules, including the restriction on head office expenses under section 44C. Liaison office expenses said to relate only to Indian operations were also not allowed outside that restriction, because their allowance depended on factual allocation and the amended statutory position. The non-discrimination argument against the higher tax rate for a foreign company failed, as the comparison with a co-operative bank was not apt and section 90 clarifies that a higher rate for a foreign company is not discriminatory. The rectification applications were therefore rejected. Case-Laws Income Tax Fri, 27 Jul 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=119323