Thursday , September 18, 2025 |   08:46:22 IST
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI
About Us Contact Us Newsletters
 
NEWS FLASH
 
TP - Adjustment must be benchmarked using domestic Prime Lending Rate (PLR) & not LIBOR, where the Compulsorily Convertible Debentures are INR-denominated: ITAT (See Breaking News) TP - Transfer pricing additions not sustainable in light of bilateral & unilateral Advance Pricing Agreements entered between Assessee & CBDT: ITAT (See Breaking News) TP - TPO cannot reject TP study of assessee on ground that assessee has not availed all services agreed with AE: ITAT (See Breaking News) I-T - Genuine secondment arrangements with employer-employee relationship with, Indian entity are not subject to withholding tax: HC (See Breaking News) TP - Tolerance limit of 3% is applicable on transactions with AEs if assessee is not wholesale automobile trader: HC (See Breaking News) DTAA - Loss incurred by non-resident taxpayer from sale of non-grandfathered shares cannot be set off against capital gain, which is exempt from taxation in India: ITAT (See Breaking News) G20 GDP spikes by 0.9% in Q2 (See Brief ) DTAA - In selling of shares, possibility of rigging share prices leading to heavy capital gain and siphoning out gains to tax heavens, cannot be ruled out: ITAT (See Breaking News) TP - Functionally different companies cannot be considered as comparables: ITAT (See Breaking News) TP - If assessee has charged fees @0.5% on account of corporate guarantee provided by it, then such fee would be considered at ALP: ITAT (See Breaking News) TP - In case of default, there is always inherent risk in providing guarantees which may be reason that Finance provider insist on non-charging any commission from AE as commercial principle: ITAT (See Breaking News) TP - Corporate guarantee is not comparable to bank guarantee; commission charged cannot be evaluated based on bank guarantee rates: HC (See Breaking News) I-T - Expenses incurred by assessee in respect of Hyderabad unitis incurred for business purposes qualify to be considered u/s 37(1), if expenses are intrinsically connected with business of assessee: ITAT (See Breaking News) I-T - Export commission paid to non-residents for services rendered abroad without carrying out any business operations in India, is not taxable in India: HC (See Breaking News) TP - Adjustment made by TPO shall be restricted to international transactions alone, and not upon entire turnover/operating costs: HC (See Breaking News) I-T - Broadcasting license fees received for telecast of live matches cannot be considered as royalty: ITAT (See Breaking News) TP - TPO shall compute eligible profits as per Sec 80IA(8) with reference to rates at which respective State Electricity Boards/distribution companies has supplied electricity to end consumers in open market: ITAT (See Breaking News)
 
TII SEARCH
 
 
   
Home >> News Brief
 

CBDT invites comments on report pertaining to Profit Attribution to PE
By TII News Service
Apr 18, 2019 , New Delhi

    

Taxation of non-residents in India is governed by the provisions of the Income-tax Act, 1961 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 of the Act, respectively. The 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. Under Article 7 in the Indian treaties, profits are to be attributed to the PE as if it were a distinct and separate entity on the basis of the accounts of the PE and where such accounts are not available to enable determination of profits attributable to the PE, the profits attributable to the PE can be determined under the domestic laws. For the application of this method, the Assessing Officer in India can resort to Rule 10 of Income-tax Rules, 1962.

Recognizing the significance of issues relating to attribution of profits to a permanent establishment as well as the need to bring greater clarity and predictability in the applicable tax regime, a Committee was formed to examine the existing scheme of profit attribution to PE under Article 7 of DTAAs and recommend changes in Rule 10 of the Income-tax Rules, 1962. The Committee has submitted its report and it has been decided to seek suggestions/comments of the stakeholders and the general public. For this purpose, the notice seeking suggestions/comments of the stakeholders and the general public alongwith the report of the Committee on profit attribution has been placed in public domain and can be accessed at www.incometaxindia.gov.in . Suggestions/comments on the same may be furnished electronically at the email address usfttr-1@gov.in within 30 days of the publication of the aforementioned document on the website of the Department .

 
 
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI TII
  • DTAA
  • Circulars (I-T Act, 1922)
  • Limited Treaties
  • Other Treaties
  • TIEAs
  • Notifications
  • Circulars
  • Relevant Sections of I-T Rules,1962
  • Instructions
  • Administrative Orders
  • DRP Panel
  • I-T Act, 1961
  • MLI
  • Relevant Portion of I-T Act,1922
  • GAAR
  • MAP
  • OECD Conventions
  • Draft Guidelines
  • DTC Bill
  • Committee Reports
  • FATCA
  • Intl-Taxation
  • Finance Acts
  • Manual on EoI
  • UN Model Taxation
  • Miscellaneous
  • Cost Inflation Index
  • Union Budget
  • Information Security Guidelines
  • APA Annual Report
  • APA Rules
  • Miscellaneous
  • Relevant Sections of Act
  • Instructions
  • Circulars
  • Notifications
  • Draft Notifications
  • Forms
  • TP Rules
  • APA FAQ
  • UN Manual on TP
  • Safe Harbour Rules
  • US Transfer Pricing
  • FEMA Act
  • Exchange Manual
  • Fema Notifications
  • Master Circulars
  • Press Notes
  • Rules
  • FDI Circulars
  • RBI Circulars
  • Reports
  • FDI Approved
  • RBI Other Notifications
  • FIPB Review
  • FEO Act
  • INTELLECTUAL PROPERTY
  • CBR Act
  • NBFC Report
  • Black Money Act
  • PMLA Instruction
  • PMLA Bill
  • FM Budget Speeches
  • Multimodal Transportation
  • Vienna Convention
  • EXIM Bank LoC
  • Manufacturing Policy
  • FTDR Act, 1992
  • White Paper on Black Money
  • Posting Policy
  • PMLA Cases
  • Transfer of Property
  • MCA Circular
  • Limitation Act
  • Type of Visa
  • SSAs
  • EPFO
  • Acts
  • FAQs
  • Rules
  • Guidelines
  • Tourist Visa
  • Notifications
  • Arbitration
  • Model Text
  • Agreements
  • Relevant Portion of I-T Act
  • I-T Rules, 1962
  • Circulars
  • MISC
  • Notification
  • About Us
  • Contact Us
  •  
     
    A Taxindiaonline Website. Copyright © 2010-2025 | Privacy Policy | Taxindiainternational.com Pvt. Ltd. OPC All rights reserved.