India: No service PE, employees less than nine months | KPMG | BE
close
Share with your friends

India: No service PE, employees worked less than nine months

India: No service PE, employees less than nine months

The Mumbai Bench of the Income-tax Appellate Tribunal held that the UAE-based taxpayer did not have a service permanent establishment (PE) in India under terms of the India-UAE income tax treaty because the period (days) of working by the taxpayer’s employees was less than nine months.

1000

Related content

The tribunal also found that:

  • The taxpayer did not have any fixed-place PE because the Indian subsidiary had not earmarked any specific place that was under the control or disposal of the taxpayer. 
  • Because the taxpayer provided services to the Indian company and did not receive any service from it, there was no dependent agent PE in India.

 

The case is: Booz & Company (ME) FZ-LLC 

 

Read a January 2018 report [PDF 683 KB] prepared by the KPMG member firm in India

© 2018 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit