August 2021

Agreement entered between employer employee during employment cannot be treated as business or other sources income

PE has to be ascertained qua stream of Income and not on entity. Dependency to be only checked if established as agent and not on principal to principal basis

To establish PE of a foreign entity there needs to be a proof that Indian activities are controlled by foreign entity.

Guarantee fees cannot be considered as Fees for Technical services

Word is a subset of Term, and when a term is defined under DTAA, there is no need to borrow the meaning of a particular word from Act. India-Singapore Treaty needs to be read with Static Approach

MAT provision is a separate code in itself, Income not taxable by virtue of DTAA shall not be reduced from book profit to calculate MAT.

Article 12 – Fees for technical service doesn’t necessarily include all types of technical services

Payment for the mere supply of design is not considered as usage and is therefore not Royalty.

The term “preparatory and auxiliary” would have to be seen with respect to its contribution in total activity chain and not independently as a service.

Benefit of India-Mauritius treaty won’t be available as after the lifting corporate veil it was seen that POEM was in USA and not Mauritius.