TaxTMI 
TaxTMI 
Public Consultation on the proposal for amendment of Rules for Profit attribution to Permanent Establishment
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....ect : Public Consultation on the proposal for amendment of Rules for Profit attribution to Permanent Establishment-reg. Taxation of non-residents in India is governed by the provisions of the Income-tax Act, 1961 ("the Act") and the provisions of the Double Taxation Avoidance Agreement(s) [DTAA(s)] concluded or adopted by the central government under the powers conferred under Section 90 or 90A o....
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....rmissible under such agreement. Thus, business income of a non- resident can be taxed in India if it satisfies the requisite thresholds provided under the Act as well as the threshold provided in the applicable tax treaty, by a concept of Permanent Establishment (PE), which is defined in Article 5 of Model Tax Conventions and tax treaties. 2. Under Article 7 in the Indian treaties, profits are to....
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....ts report (enclosed herewith) and it has been decided to seek stakeholder's comments on the Report of the committee. 4. In this regard, suggestions/comments of the stakeholders and the general public are invited on the following question: a. What are your views on the recommendations of the Committee as contained in Section 11 of the Report? In answering this question please consider the ob....