India: No service PE, employees less than nine months | KPMG | GLOBAL
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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.


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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

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