https://www.taxtmi.com/caselaws?id=377836 A foreign enterprise's offshore supply income was held not taxable in India where the Revenue failed to establish a permanent establishment under Article 5 of the India-Finland treaty. The Tribunal applied the disposal test and found that co-location, administrative support, customer interface, and employee participation by the Indian entity did not amount to a fixed place, place of management, office, sales outlet, installation, supervisory, or dependent agent permanent establishment; the related attribution and hardware-software split issues therefore fell away. It also rejected taxation of notional interest on delayed vendor-financing consideration, holding that tax can arise only on real income that has accrued, been received, or become legally receivable. The proposed interest addition was deleted. en-us Fri, 29 Mar 2019 00:00:00 +0530 Thu, 04 Apr 2019 07:20:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=377836 A foreign enterprise's offshore supply income was held not taxable in India where the Revenue failed to establish a permanent establishment under Article 5 of the India-Finland treaty. The Tribunal applied the disposal test and found that co-location, administrative support, customer interface, and employee participation by the Indian entity did not amount to a fixed place, place of management, office, sales outlet, installation, supervisory, or dependent agent permanent establishment; the related attribution and hardware-software split issues therefore fell away. It also rejected taxation of notional interest on delayed vendor-financing consideration, holding that tax can arise only on real income that has accrued, been received, or become legally receivable. The proposed interest addition was deleted. Case-Laws Income Tax Fri, 29 Mar 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=377836