https://www.taxtmi.com/caselaws?id=365380 A franchise arrangement did not create a dependent agent permanent establishment in India under Article 5 of the India-USA DTAA because the franchisee and sub-franchisees carried on business independently on a principal-to-principal basis. The assessee's rights to inspect accounts, approve suppliers, and regulate advertising were only protective covenants to safeguard brand value and royalty collection, not operational control. As the franchisee did not sell or store goods on the assessee's behalf, the PE conditions were not met, and the receipts could not be taxed as business income in India on that basis. en-us Mon, 13 Aug 2018 00:00:00 +0530 Thu, 16 Aug 2018 07:58:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=365380 A franchise arrangement did not create a dependent agent permanent establishment in India under Article 5 of the India-USA DTAA because the franchisee and sub-franchisees carried on business independently on a principal-to-principal basis. The assessee's rights to inspect accounts, approve suppliers, and regulate advertising were only protective covenants to safeguard brand value and royalty collection, not operational control. As the franchisee did not sell or store goods on the assessee's behalf, the PE conditions were not met, and the receipts could not be taxed as business income in India on that basis. Case-Laws Income Tax Mon, 13 Aug 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=365380