https://www.taxtmi.com/caselaws?id=471117 Offshore sales to an Indian subsidiary or Indian customers are not taxable in India merely because the subsidiary independently purchases, assembles and sells goods, or communicates customer requirements. A business connection or fixed-place permanent establishment requires business operations in India for the foreign enterprise and premises at its disposal; independent principal-to-principal transactions do not satisfy those conditions. An agency permanent establishment does not arise where the subsidiary lacks authority to conclude contracts, negotiate material terms, maintain delivery stock, or habitually secure orders. No profit is attributable to India in those circumstances. Income subject to tax deduction at source does not create advance-tax liability for a non-resident, and payer default does not trigger interest under section 234B. en-us Thu, 28 Mar 2019 00:00:00 +0530 Fri, 21 Aug 2026 18:13:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=471117 Offshore sales to an Indian subsidiary or Indian customers are not taxable in India merely because the subsidiary independently purchases, assembles and sells goods, or communicates customer requirements. A business connection or fixed-place permanent establishment requires business operations in India for the foreign enterprise and premises at its disposal; independent principal-to-principal transactions do not satisfy those conditions. An agency permanent establishment does not arise where the subsidiary lacks authority to conclude contracts, negotiate material terms, maintain delivery stock, or habitually secure orders. No profit is attributable to India in those circumstances. Income subject to tax deduction at source does not create advance-tax liability for a non-resident, and payer default does not trigger interest under section 234B. Case-Laws Income Tax Thu, 28 Mar 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=471117