28 October 2016 India's Delhi Tribunal rules income of nonresident not attributable to PE is still taxable in India as fees for technical services In International Management Group (UK) Ltd (the Taxpayer), the Delhi Income Tax Appellate Tribunal (Tribunal) held that profits are taxable as business profits under the India-UK Treaty (the Treaty) only to the extent of activities carried on by the Taxpayer through its service permanent establishment (PE), but the remainder of the profits not attributable to the activities of the service PE are taxed as fees for technical services (FTS) under the Treaty. However, the Tribunal held, pursuant to the provisions of the Indian Tax Laws (ITL), that the entire amount was taxable as FTS since the services provided by the Taxpayer were utilized for carrying on business in India and the source of income was in India. A Tax Alert prepared by EY's Global Tax Desk Network, and attached below, provides additional details. Document ID: 2016-1829 |
