Attribution of Profits to a Dependent Agent Permanent Establishment: An Analysis of the Indian Approach
11 Pages Posted: 6 Apr 2009 Last revised: 3 Feb 2017
Date Written: April 5, 2009
This paper critically examines the rulings of the Bombay High Court and the Income Tax Appellate Tribunal (Mumbai) in SET Satellite Pte. Ltd. v Deputy Director of Income Tax (International Taxation) and the ruling of the Supreme Court in Morgan Stanley & Co. Inc. v Director of Income Tax, Mumbai. In light of this, the attempt is to find out whether Indian courts treat dependent agent and PE as the same taxable entity and what profits are attributable to the PE of a non-resident enterprise in case the dependent agent is remunerated at an arms' length standard.
Keywords: Morgan Stanley, Satellite, Set, Permanent Establishment, Agent, India, Attribution,OECD, tax
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