https://www.taxtmi.com/caselaws?id=246918 Seconded employees can create a service permanent establishment in India where the treaty threshold is met, even if they remain on the foreign enterprise's payroll and retain lien, and stewardship or preparatory activities do not by themselves create a PE. Receipts for transfer of know-how, patents, trademarks and confidential information were treated as royalty, while consideration for services rendered through personnel was treated as fees for technical services. The treaty override to the business profits article applied only where such income was effectively connected with the permanent establishment; on that basis, fees linked to the deputed employees moved to business profits, while royalty and other technical fees without effective connection remained taxable under the relevant royalty/FTS article. en-us Fri, 14 Mar 2014 00:00:00 +0530 Sat, 26 Apr 2014 16:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=246918 Seconded employees can create a service permanent establishment in India where the treaty threshold is met, even if they remain on the foreign enterprise's payroll and retain lien, and stewardship or preparatory activities do not by themselves create a PE. Receipts for transfer of know-how, patents, trademarks and confidential information were treated as royalty, while consideration for services rendered through personnel was treated as fees for technical services. The treaty override to the business profits article applied only where such income was effectively connected with the permanent establishment; on that basis, fees linked to the deputed employees moved to business profits, while royalty and other technical fees without effective connection remained taxable under the relevant royalty/FTS article. Case-Laws Income Tax Fri, 14 Mar 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=246918