https://www.taxtmi.com/caselaws?id=361383 A foreign enterprise may have a dependent agent permanent establishment in India where the Indian subsidiary habitually identifies customers, negotiates commercial terms, secures orders and effectively concludes contracts on its behalf. Arm's length remuneration to the subsidiary does not by itself bar further profit attribution if the transfer pricing exercise does not capture all functions performed and risks assumed in India. Profit attribution must be based on a rational estimate of net profit related to Indian sales, after reducing income already taxed in the subsidiary's hands; if the record is insufficient, recomputation is required. For a non-resident whose income is subject to tax deduction at source, interest under section 234B is not leviable on the footing of payer default. en-us Mon, 28 May 2018 00:00:00 +0530 Wed, 08 Aug 2018 18:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=361383 A foreign enterprise may have a dependent agent permanent establishment in India where the Indian subsidiary habitually identifies customers, negotiates commercial terms, secures orders and effectively concludes contracts on its behalf. Arm's length remuneration to the subsidiary does not by itself bar further profit attribution if the transfer pricing exercise does not capture all functions performed and risks assumed in India. Profit attribution must be based on a rational estimate of net profit related to Indian sales, after reducing income already taxed in the subsidiary's hands; if the record is insufficient, recomputation is required. For a non-resident whose income is subject to tax deduction at source, interest under section 234B is not leviable on the footing of payer default. Case-Laws Income Tax Mon, 28 May 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=361383