https://www.taxtmi.com/caselaws?id=348397 Expatriate salaries paid for personnel working exclusively for the Indian permanent establishment were treated as deductible branch expenditure, and routing payment through the head office did not defeat the claim. MAT under section 115JB was held inapplicable to the banking company, with treaty protection under section 90(2) prevailing where more beneficial. The challenge to the tax rate on income attributable to the permanent establishment failed because the DTAA anti-discrimination argument could not override the statutory clarification that a higher rate for a foreign company is not less favourable treatment. Interest adjustments between the branch and head office, and head office expenditure under section 44C, were also accepted as deductible or not taxable on the facts. en-us Tue, 19 Sep 2017 00:00:00 +0530 Wed, 22 Mar 2023 15:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=348397 Expatriate salaries paid for personnel working exclusively for the Indian permanent establishment were treated as deductible branch expenditure, and routing payment through the head office did not defeat the claim. MAT under section 115JB was held inapplicable to the banking company, with treaty protection under section 90(2) prevailing where more beneficial. The challenge to the tax rate on income attributable to the permanent establishment failed because the DTAA anti-discrimination argument could not override the statutory clarification that a higher rate for a foreign company is not less favourable treatment. Interest adjustments between the branch and head office, and head office expenditure under section 44C, were also accepted as deductible or not taxable on the facts. Case-Laws Income Tax Tue, 19 Sep 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=348397