https://www.taxtmi.com/caselaws?id=208197 A project office opened for coordination and execution of a composite turnkey contract can constitute a fixed place permanent establishment under Article 5(1) of the India-Korea DTAA, and the exclusion for preparatory or auxiliary activities in Article 5(4) will not apply where the office performs substantive business functions. Once a permanent establishment exists, offshore profits must be attributed on the basis of actual activities and evidence; an ad hoc 25% attribution lacks support without proper fact-finding. The text also notes the principle that interest under section 234B is generally not leviable on a non-resident where tax was deductible at source, subject to recomputation on the cited authorities. en-us Tue, 30 Aug 2011 00:00:00 +0530 Mon, 25 Apr 2016 13:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=208197 A project office opened for coordination and execution of a composite turnkey contract can constitute a fixed place permanent establishment under Article 5(1) of the India-Korea DTAA, and the exclusion for preparatory or auxiliary activities in Article 5(4) will not apply where the office performs substantive business functions. Once a permanent establishment exists, offshore profits must be attributed on the basis of actual activities and evidence; an ad hoc 25% attribution lacks support without proper fact-finding. The text also notes the principle that interest under section 234B is generally not leviable on a non-resident where tax was deductible at source, subject to recomputation on the cited authorities. Case-Laws Income Tax Tue, 30 Aug 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=208197