https://www.taxtmi.com/caselaws?id=802397 Article 7 of the India-USA tax treaty subjects permanent establishment profit attribution to separate rules on specified intra-enterprise service charges, excluding the profit element above actual expense reimbursement. The banking exception for interest does not extend to service charges. Branch management salary is deductible when incurred wholly and exclusively for business; head office payment alone does not trigger section 44C. Transfer-pricing comparability depends on actual functions, assets and risks and contemporaneous data. Earlier-year data must reveal facts capable of influencing the transfer price, while depreciation adjustments require reliable quantification. Segment costs require a functional nexus, rational allocation and no duplication. Head office and centralised service expenditure require separate examination of attribution, arm's length pricing and deductibility. Banking securities held as stock-in-trade may be valued at cost or market value, whichever is lower, if consistently applied. en-us Fri, 09 Oct 2026 00:00:00 +0530 Thu, 05 Nov 2026 07:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=802397 Article 7 of the India-USA tax treaty subjects permanent establishment profit attribution to separate rules on specified intra-enterprise service charges, excluding the profit element above actual expense reimbursement. The banking exception for interest does not extend to service charges. Branch management salary is deductible when incurred wholly and exclusively for business; head office payment alone does not trigger section 44C. Transfer-pricing comparability depends on actual functions, assets and risks and contemporaneous data. Earlier-year data must reveal facts capable of influencing the transfer price, while depreciation adjustments require reliable quantification. Segment costs require a functional nexus, rational allocation and no duplication. Head office and centralised service expenditure require separate examination of attribution, arm's length pricing and deductibility. Banking securities held as stock-in-trade may be valued at cost or market value, whichever is lower, if consistently applied. Case-Laws Income Tax Fri, 09 Oct 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=802397