- Court Ruling on Permanent Establishment: On January 15, 2025, the Delhi High Court ruled that the secondment of employees from a South Korean entity to its Indian subsidiary does not create a fixed place of business or a Service Permanent Establishment (PE) in India under the India-South Korea tax treaty.
- Independent Operations: The court emphasized that the Indian subsidiary operates as an independent legal entity conducting its own business, and the presence of seconded employees was limited to facilitating subsidiary activities, without impacting the South Korean entity’s global operations.
- Service PE Rejection: The High Court dismissed the tax authorities’ claim that seconded employees were providing services on behalf of the South Korean entity, concluding that these employees were solely at the disposal of the Indian subsidiary, and thus, there was no Service PE in India.
Source EY
Latest Posts in "India"
- India to Impose New Health and Security Tax on Tobacco Machinery, Amend GST Compensation Levy
- Punjab Trade, Tax Bodies Threaten Statewide Stir Over Delayed VAT, GST Refunds
- Briefing Document & Podcast: E-Invoicing and E-Reporting in India
- Meghalaya Extends VAT Exemption on Fruit Wine to 10 Years, Boosting Local Wine Industry
- Allahabad HC: Arbitrary GST Registration Cancellations Without Reasons Amount to ‘Economic Death’ for Businesses
