HC ruled against treating NIPL (subsidiary) as a Permanent ...

Nokia Subsidiary Not Permanent Establishment of Parent Company Under Article 5(8) Despite Management Control

February 25, 2025

Case Laws Income Tax HC

HC ruled against treating NIPL (subsidiary) as a Permanent Establishment (PE) of Nokia OY (parent company). The court emphasized that Article 5(8) of DTAA requires more than mere parent-subsidiary control to establish PE status. The existence of PE must be evaluated based on empirical standards and objective evidence rather than perceptions or virtual projection theories. The court rejected arguments for both Fixed Place PE and Dependent Agent PE (DAPE), noting that parent company oversight and supervision of a subsidiary does not negate the latter's independent economic existence. The appellants failed to prove NIPL was operating Nokia OY's business as its adjunct. Software taxation issue was decided against appellants following Engineering Analysis Centre precedent.

View Source

← Previous Next →

HC ruled against treating NIPL (subsidiary) as a Permanent ...

Nokia Subsidiary Not Permanent Establishment of Parent Company Under Article 5(8) Despite Management Control

February 25, 2025

Case Laws Income Tax HC

You may also like:

Permanent Establishment under Article 5 of the DTAA between India and U.S.A - Whether Appellant has a Permanent Establishment ('PE') in India under Article 5 of the DTAA...

Income accrued in India - Permanent Establishment (PE) in India under Article–5 of the India–Mauritius Tax Treaty - The two companies were not exclusively working for...

The assessee, a foreign airline company and tax resident of the USA, engaged in the business of operating aircraft in international traffic, obtained approval from DGCA...

Permanent Establishment (PE) in India - attribution of profit to the PE - Revenue authorities have not brought any material on record to demonstrate that the activities...

The Appellate Tribunal dismissed the Section 7 application filed by the Appellant, ruling that the share application money deposited by the Appellant with the Corporate...

The case involved determining the liability of a subsidiary company to pay service tax for services provided by its parent company in the USA. The subsidiary had...

ITAT ruled against establishing a dependent agent Permanent Establishment (PE) of foreign entity (Japan) through its Indian subsidiary under India-Japan DTAA Article 5....

The HC held that the Liaison Office (LO) of the US company engaged in Money Transfer Services did not constitute a Permanent Establishment (PE) in India under the...

Even if the assessee's case is not covered by Article 8, the business profits would not be chargeable to Indian tax as it does not carry on business in India through a...

Income accrued in India - taxation of interest income - assessee is a company incorporated and fiscally domiciled in the Republic of Japan - For interplay of Article...

Article 8 of DTAA between India and Germany - Reference to DRP - Pooling/slot arrangements - Permanent Establishment (PE) - Feeder services - operation of ships in...

Determination of Permanent Establishment - Article 5 of Indo-Mauritius DTAA – GPI project – the assessee clearly has a PE in India during the relevant years - AT

Income taxable in India - PE in India - Once we hold that in the light of the present legal position, existence of dependent agency permanent establishment in wholly tax...

Income accrued in India - Permanent Establishment (PE) - the distribution income earned by the assessee cannot be taxed in India because Taj India does not constitute an...

CIRP - Status of NOIDA authority - Financial Creditors or Operational Creditors - dues outstanding under the lease - , in the lease in question, there has been no...

Quick Updates: