https://www.taxtmi.com/caselaws?id=246092 A foreign enterprise is taxable in India on business profits only if it has a Permanent Establishment under domestic law and the India-Germany treaty, and only to the extent profits are attributable to that establishment. On identical facts, the Tribunal noted that activities of an Indian subsidiary do not by themselves create a Permanent Establishment or business connection for the foreign company. It also stated that, even on an assumed Permanent Establishment basis, gross taxation at the higher domestic rate is not justified where the receipts lack a live economic nexus with the establishment. Treaty-based taxation of royalties and fees for technical services therefore prevails. en-us Fri, 31 Jan 2014 00:00:00 +0530 Wed, 16 Apr 2014 12:59:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=246092 A foreign enterprise is taxable in India on business profits only if it has a Permanent Establishment under domestic law and the India-Germany treaty, and only to the extent profits are attributable to that establishment. On identical facts, the Tribunal noted that activities of an Indian subsidiary do not by themselves create a Permanent Establishment or business connection for the foreign company. It also stated that, even on an assumed Permanent Establishment basis, gross taxation at the higher domestic rate is not justified where the receipts lack a live economic nexus with the establishment. Treaty-based taxation of royalties and fees for technical services therefore prevails. Case-Laws Income Tax Fri, 31 Jan 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=246092