deal with the
issue regarding portion of income attributable to the service PE in
India.
5. Under the above circumstances, and relying on Commissioner
(Appeals ... offered to
tax the income on the basis that it had service PE in India under Article
5(2)(k)(i) for the entire year
these employees of BH Inc has resulted in
creation of a Service PE [i.e. permanent establishment under article 5(2)(l) of India ... PE
under article 7(1) is not the gross receipt but the profits attributable to the PE. The
existence of service PE, in the present
circumstances of the case;
b. Concluding that two deputed employees constitute service PE
of Obopay Inc without appreciating that the jurisdiction ... circumstances of the case;
b. Concluding that two deputed employees constitute service PE
of Obopay Inc without appreciating that the jurisdiction
services. The assessee concluded by
stating that it neither has a service PE nor an agency PE in India, therefore, no income can be
attributed ... assessee in India. The AO treated
SRSIPL not only as a service PE of the assessee but also as agency PE/ DAPE. Having held
about the status of the assessee i.e.
installation PE or Service PE.During the assessment proceedings, the AO found that the
assessee had undertaken ... adjudicated here is, whether in the
case of the assessee, the Service PE can be said to be established/constituted within the scope
of Article
emphasis has been placed on the fact that there was a service PE in
the present case. Nothing, however, turns on the existence ... PE
under article 7(1) is not the gross receipt but the profits attributable to the PE. The
existence of service PE, in the present
cost.
However, the AO held that the assessee had a service PE in India and accordingly
the aforesaid amount was taxable in India. Further ... expenses and held balance 90% as business income of the alleged service PE
on the basis of order passed
that the assessee had business connection in India as well as the PE in India in
terms of article 5 of the DTAA,that ... safely be held there was neither fixed base PE nor service PE in India,of the assessee,for the year
under appeal.Though
following parties :-
S.No Name of the Party Country Amount Nature of service
(Rs)
1 Fuji Asia Co Ltd Thailand 5,36,550 Commissioning
charges ... Page 3 of 55
service as per Income tax Act, there is no requirement for PE in India
and the same is taxable in India
India-
UK DTAAs, which embody the concept of a service permanent establishment
(a "service PE"). In terms of those articles, the Court must ... only as much money as has been spent in providing the service
would remove the tax liability altogether. This is clearly an incorrect reasoning
that
