OrbitaxIndian Tribunal Rules on Taxation of Payments for U.S. Employees Seconded to India
|Treaty Development|India-United States
On 18 December 2014, the Mumbai Tribunal held that employees seconded by a U.S. company to provide service to its group companies in India constitutes a permanent establishment (PE) in India, and the related payments are to be attributed to the PE and taxed as business profits and not as fees for technical services (FTS).
The case involved a U.S. company whose main business activity is to prov…
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