https://www.taxtmi.com/caselaws?id=270339 Substance over form analysis treated the Indian counterparty as a dependent agent where it canvassed advertisements and enabled telecasting on the foreign enterprise's channels, even though the later contract was styled principal to principal and remuneration changed from commission to a fixed amount. On that basis, the foreign enterprise was regarded as having a permanent establishment in India, making advertisement revenue taxable as business profits attributable to that PE. The article also notes that consideration for distribution rights of television channels was treated as royalty by the lower authorities, but that characterization required fresh examination in light of the treaty, domestic law, and later clarification of "process" in the royalty provision, so the issue was remanded for reconsideration. en-us Wed, 16 Dec 2015 00:00:00 +0530 Sat, 30 Apr 2016 10:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=270339 Substance over form analysis treated the Indian counterparty as a dependent agent where it canvassed advertisements and enabled telecasting on the foreign enterprise's channels, even though the later contract was styled principal to principal and remuneration changed from commission to a fixed amount. On that basis, the foreign enterprise was regarded as having a permanent establishment in India, making advertisement revenue taxable as business profits attributable to that PE. The article also notes that consideration for distribution rights of television channels was treated as royalty by the lower authorities, but that characterization required fresh examination in light of the treaty, domestic law, and later clarification of "process" in the royalty provision, so the issue was remanded for reconsideration. Case-Laws Income Tax Wed, 16 Dec 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=270339