https://www.taxtmi.com/caselaws?id=241334 A permanent establishment's credit to its head office for technical expenditure was treated as more than a mere reimbursement because the charge was based on a flat percentage of gross revenue and the allocation was not shown to be reliable. Applying domestic law and mutuality, the Tribunal treated the PE and head office as dealing with self, denying deduction in the PE's computation and rejecting taxation of the same amount in the head office as fees for technical services. It further noted that the treaty position had to be examined under section 90(2) for final computation. Interest under sections 234B and 234C was held not chargeable to the non-resident where tax was deductible at source. en-us Wed, 20 Mar 2013 00:00:00 +0530 Fri, 18 Mar 2016 12:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=241334 A permanent establishment's credit to its head office for technical expenditure was treated as more than a mere reimbursement because the charge was based on a flat percentage of gross revenue and the allocation was not shown to be reliable. Applying domestic law and mutuality, the Tribunal treated the PE and head office as dealing with self, denying deduction in the PE's computation and rejecting taxation of the same amount in the head office as fees for technical services. It further noted that the treaty position had to be examined under section 90(2) for final computation. Interest under sections 234B and 234C was held not chargeable to the non-resident where tax was deductible at source. Case-Laws Income Tax Wed, 20 Mar 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=241334