https://www.taxtmi.com/caselaws?id=360699 The franchisee and sub-franchise arrangements were analysed under Article 5 of the India-USA DTAA to determine whether they created a dependent agent permanent establishment in India. The Indian entity was treated as carrying on an independent business, while the assessee's receipts were limited to royalty and store-opening fees. Contractual restrictions were held to protect brand value and secure royalty flows, not to authorise the Indian entity to act on behalf of the assessee or conclude contracts for it. The conditions for a dependent agent permanent establishment were therefore not satisfied, and the Revenue's challenge failed. en-us Fri, 18 May 2018 00:00:00 +0530 Mon, 21 May 2018 12:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=360699 The franchisee and sub-franchise arrangements were analysed under Article 5 of the India-USA DTAA to determine whether they created a dependent agent permanent establishment in India. The Indian entity was treated as carrying on an independent business, while the assessee's receipts were limited to royalty and store-opening fees. Contractual restrictions were held to protect brand value and secure royalty flows, not to authorise the Indian entity to act on behalf of the assessee or conclude contracts for it. The conditions for a dependent agent permanent establishment were therefore not satisfied, and the Revenue's challenge failed. Case-Laws Income Tax Fri, 18 May 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=360699