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[ITAT] No DTAA Relief Where POEM Lies Outside Both Contracting States
The Mumbai ITAT ruled that Bay Lines (Mauritius) was not entitled to treaty relief under the India–Mauritius DTAA as its place of effective management (POEM) was in the UAE. The Tribunal also held that its Indian agent did not constitute a dependent PE. This dual ruling clarifies the evidentiary threshold for POEM and reaffirms the independent agent exception under international tax law.
Apr 185 min read
ITAT: Payments by Deloitte India for Internal Brand, Communication, and Tech Services Not Royalty under Article 13 of the India–UK DTAA
The ITAT Mumbai held that payments made by Deloitte India to a UK-based affiliate for internal branding, technology, and communication services do not qualify as "royalty" under Article 13 of the India–UK DTAA. As there was no transfer of intellectual property, copyright, or commercial exploitation, the tribunal ruled that no TDS obligation arose. This reinforces jurisprudence around intra-network service arrangements and cost-sharing.
Apr 145 min read
Tribunal Affirms Tax Exemption for FPIs on Rights Entitlements under the India-Ireland DTAA
The ITAT Mumbai ruled in favour of Vanguard, holding that gains from sale of rights entitlements by FPIs are not taxable in India under Article 13(6) of the India-Ireland DTAA. The Tribunal distinguished REs from shares and disallowed the Revenue’s attempt to offset exempt gains against Indian capital losses. This judgment reinforces treaty-based protections and clarity on the treatment of financial instruments distinct from equity.
Apr 114 min read
MFN Clause Not Self-Executing: Supreme Court Reiterates the Requirement of Notification for the MFN Clause in DTAAs to Apply
The Supreme Court rules that the MFN clause in DTAAs is not automatic and requires government notification under the Income-tax Act, 1961.
Jan 255 min read
Delhi ITAT Clarifies on Taxability of Digital Services Under the India-Singapore DTAA
Delhi ITAT rules that digital service receipts under the India-Singapore DTAA are not ‘royalty’ or ‘FTS’, offering clarity on taxability.
Dec 31, 20245 min read
India-US DTAA: Delhi High Court on ‘Preparatory’ and ‘Auxiliary’ Activities Under Article 5
Delhi HC clarifies the scope of ‘preparatory’ and ‘auxiliary’ activities under the India-US DTAA, focusing on Permanent Establishments.
Dec 31, 20245 min read
Permanent Establishment or Misconception? ITAT Clarifies the 120-Day Rule
Does the 120-day rule always create a Permanent Establishment? ITAT clarifies the criteria for taxation under the India-USA DTAA.
Dec 30, 20244 min read
ITAT Delhi Rules on Non-Resident Taxation: Source-Based Income from Indian Entities Liable to Tax Despite DTAA Protection
The ITAT Delhi clarifies that Section 5(2) prevails over Section 9(2) for non-resident taxation when the income source is in India.
Dec 27, 20242 min read
The ITAT Bangalore clarifies Permanent Establishment and Fees for Technical Services under India-USA DTAA
SanDisk India's role in PE creation and reimbursements for seconded employees under India-USA DTAA analysed by ITAT Bangalore in key ruling.
Dec 23, 20244 min read
Arm’s Length Principle Upheld: Special Bench Rules on Taxation of Transactions Between Permanent Establishment & Head Office Under Transfer Pricing Laws
The ITAT Special Bench clarifies that HO-PE transactions are subject to arm's length pricing under TP laws, ensuring compliance.
Nov 20, 20244 min read
ITAT Delhi Affirms DTAA Tax Residency Benefits for the US LLCs
ITAT Delhi grants DTAA benefits to the US LLC, affirming that tax residency can exist independently of actual tax payments.
Sep 14, 20243 min read
ITAT Ruling Clarifies Taxability of Technical Services Under India-Thailand DTAA
ITAT sheds light on Denso's 2020 tax debate, highlighting the DTAA's intricate details.
Jun 11, 20243 min read
Significance of 'Fees for Included Services' in Indo-USA DTAA
Explore how 'Fees for Included Services' shape cross-border tax rules in our latest legal insight on the Indo-USA DTAA.
May 20, 20242 min read
[ITAT] Revenue from Software Licensing Fees and Annual Maintenance Contracts Not Taxable in India Due to Absence of Permanent Establishment
ITAT rules in favor of Openwave Mobility Inc., finding software licensing fees and maintenance contracts non-taxable in India without a PE.
May 13, 20244 min read
Income Tax Appellate Tribunal, Mumbai Rules Subscription Fees as Non-Taxable Business Profits for Assessee Without Permanent Establishment in India
Introduction In a significant decision, the Income Tax Appellate Tribunal (‘ ITAT ’), Mumbai in the case of American Chemical Society v....
Apr 4, 20244 min read
ITAT Rules Management Services Not Taxable as 'Royalty' under India-Netherlands DTAA
Management services aren't taxable as 'royalty': India-Netherlands DTAA-ITAT. Discover why a significant ruling overturned a tax assessment.
Apr 2, 20242 min read
India-France DTAA: ITAT Clarifies Taxation of PE-Related Interest Income
Introduction In the realm of international taxation, disputes often arise concerning the interpretation and application of double...
Feb 15, 20243 min read
Delhi High Court's Ruling on Legal Database Subscriptions: Implications for Copyright and Tax Liability
Delhi HC clarifies: Legal database subscriptions aren't taxable as 'royalty' under DTAA, absent a PE in India.
Feb 12, 20244 min read
DTAA Deliberations: ITAT Decodes the Taxability of FTS in India
Introduction The recent ruling in Solvay Asia Pacific Pte. Ltd. v. Deputy Commissioner of Income-tax. (IT), Circle-3(1)(2), International...
Feb 1, 20244 min read