https://www.taxtmi.com/caselaws?id=197126 A foreign enterprise's royalty or fee for technical services income is taxable as business profits in the source State only where the receipts have an effective nexus with a permanent establishment and are attributable to it. Mere monitoring of Indian subsidiaries or the fact that payments originate from India does not establish such attribution. In the absence of that connection, treaty-based taxation under Article 7 does not apply, and the domestic gross-tax regime for royalties and fees for technical services under section 115A read with section 44D is not triggered simply because a permanent establishment is alleged. en-us Wed, 14 Dec 2016 00:00:00 +0530 Thu, 28 Dec 2017 07:31:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=197126 A foreign enterprise's royalty or fee for technical services income is taxable as business profits in the source State only where the receipts have an effective nexus with a permanent establishment and are attributable to it. Mere monitoring of Indian subsidiaries or the fact that payments originate from India does not establish such attribution. In the absence of that connection, treaty-based taxation under Article 7 does not apply, and the domestic gross-tax regime for royalties and fees for technical services under section 115A read with section 44D is not triggered simply because a permanent establishment is alleged. Case-Laws Income Tax Wed, 14 Dec 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=197126