Home Case Index All Cases Income Tax Income Tax + AAR Income Tax - 2011 (9) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (9) TMI 70 - AAR - Income TaxPE / Permanent Establishment - Whether the different periods of the contracts are to be aggregated to reckon the threshold of 183 days under Article 5.3 of the DTAA in a fiscal year in a case where the projects are not carried out for the same principal - Held that: - Applicant submits that these four projects are independent of each other and secured through independent work orders - applicant submits that the scope of these installation projects comprise of erection and installation of certain heavy equipments at the site of the customers - The fact that the income from the execution of these projects is in the nature of business profits and taxable as per Article 7.1 of the DTAA is not denied by the Revenue - In fact the Revenue did not object when the applicant offered income in the past on the basis that it has a PE in terms of Article 5.3 of the DTAA - Held that: in the given facts of the case, aggregation of the periods of the contracts cannot be made for these four contracts and consequently the applicant cannot be said to have a PE in terms of Article 5.3 of the DTAA - the income is not taxable in India
|