https://www.taxtmi.com/caselaws?id=173386 A non-resident enterprise is taxable in the source State only if it has a permanent establishment there, and a solicitation agent becomes a permanent establishment only when it habitually exercises authority to conclude contracts in the foreign enterprise's name. On the facts, the Indian company acted as a solicitation and collection agent, but final acceptance of advertisement contracts remained with the Mauritian enterprise, so a permanent establishment was not established. Treaty relief under the business profits article was also made conditional on proof that the applicant was a taxable resident of Mauritius and actually liable to income-tax there, rather than exempt as an offshore entity. en-us Tue, 18 Mar 1997 00:00:00 +0530 Fri, 23 Oct 2015 17:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=173386 A non-resident enterprise is taxable in the source State only if it has a permanent establishment there, and a solicitation agent becomes a permanent establishment only when it habitually exercises authority to conclude contracts in the foreign enterprise's name. On the facts, the Indian company acted as a solicitation and collection agent, but final acceptance of advertisement contracts remained with the Mauritian enterprise, so a permanent establishment was not established. Treaty relief under the business profits article was also made conditional on proof that the applicant was a taxable resident of Mauritius and actually liable to income-tax there, rather than exempt as an offshore entity. Case-Laws Income Tax Tue, 18 Mar 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=173386