https://www.taxtmi.com/caselaws?id=59719 Treaty-based payments for supplying personnel, deployed employees and engineering services are taxable in India only if the non-resident has a permanent establishment; where the foreign party merely supplies staff or no supervisory activity crosses the treaty threshold, no PE arises and section 40(a)(i) disallowance is not triggered. Salary costs directly attributable to technical project work are outside section 44C, which is confined to head office expenditure of an executive or general administrative character, though non-technical head office elements may still be capped. Engineering services that do not make available technical knowledge under the India-Netherlands treaty are not taxable absent a PE. en-us Fri, 05 Dec 2008 00:00:00 +0530 Tue, 05 Dec 2023 14:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59719 Treaty-based payments for supplying personnel, deployed employees and engineering services are taxable in India only if the non-resident has a permanent establishment; where the foreign party merely supplies staff or no supervisory activity crosses the treaty threshold, no PE arises and section 40(a)(i) disallowance is not triggered. Salary costs directly attributable to technical project work are outside section 44C, which is confined to head office expenditure of an executive or general administrative character, though non-technical head office elements may still be capped. Engineering services that do not make available technical knowledge under the India-Netherlands treaty are not taxable absent a PE. Case-Laws Income Tax Fri, 05 Dec 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59719