https://www.taxtmi.com/caselaws?id=400045 Where an Indian entity's remuneration is accepted at arm's length, no further profit attribution can be made to a foreign enterprise's alleged permanent establishment, because the arm's length return is treated as exhausting the taxable profit from the Indian operations. The commentary also states that interest under section 234B is not leviable on a foreign assessee whose income is subject to tax deduction at source, since the non-resident has no advance tax obligation where the payer bears the withholding duty. On both points, the analysis favours the assessee and rejects additional tax consequence beyond the withheld tax mechanism. en-us Thu, 22 Oct 2020 00:00:00 +0530 Mon, 26 Oct 2020 13:23:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=400045 Where an Indian entity's remuneration is accepted at arm's length, no further profit attribution can be made to a foreign enterprise's alleged permanent establishment, because the arm's length return is treated as exhausting the taxable profit from the Indian operations. The commentary also states that interest under section 234B is not leviable on a foreign assessee whose income is subject to tax deduction at source, since the non-resident has no advance tax obligation where the payer bears the withholding duty. On both points, the analysis favours the assessee and rejects additional tax consequence beyond the withheld tax mechanism. Case-Laws Income Tax Thu, 22 Oct 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=400045