ITAT confirmed that FCIPL does not constitute a dependent agent ...

Independent Agent Earning 77.60% Revenue from Other Parties Cannot Be Considered Dependent Agent PE Under Tax Law

April 3, 2025

Case Laws Income Tax AT

ITAT confirmed that FCIPL does not constitute a dependent agent PE of the foreign assessee in India. The Tribunal found that FCIPL merely acted as an agent for booking cargo per the assessee's fixed tariff without authority to conclude contracts. FCIPL maintained functional independence, with the assessee having no liability for FCIPL's expenses or obligations. Significantly, FCIPL conducted business for multiple enterprises, deriving only 22.32% of its revenue from the assessee while 77.60% came from other independent parties. The Tribunal determined FCIPL operated as an independent agent rather than a representative of the assessee, thereby dismissing Revenue's appeal and upholding the CIT(A)'s order.

View Source

← Previous Next →

ITAT confirmed that FCIPL does not constitute a dependent agent ...

Independent Agent Earning 77.60% Revenue from Other Parties Cannot Be Considered Dependent Agent PE Under Tax Law

April 3, 2025

Case Laws Income Tax AT

You may also like:

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 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...

Revision u/s 263 by CIT - profit attribution of a fixed place PE and the DAPE - Erroneous but not prejudicial to revenue order - Even if that computation of profit...

Existence PE - dependent agent Permanent Establishment - All the substantive parts of the key activities in making sales were done by DAIPL from India. This shows that...

Indo French DTAA - PE - Since there are no findings by the A.O., or the DRP, to the effect that the transactions between the agent and the assessee are not at an arm's...

Income taxable in India - PE in India - Tax authorities below failed to appreciate the distinction between the existence of a business connection and the income accruing...

P.E. in India - SIPL was an independent agent under Article 5(6)of the tax treaty between India and Holland, that the activities of the agent were carried out in its...

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...

The assessee had artificially split the composite contract to avoid establishment of a permanent establishment (PE) in India and tax payment. The Assessing Officer (AO)...

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...

Revision u/s 263 by CIT - There is no such finding about the payment to the dependent agent being less than the arm’s length price of services rendered by the dependent...

Indo-Swiss DTAA - though eBay India and eBay Motors are dependent agents of the assessee, but do not constitute 'Dependent agent PEs' of the assessee - AT

Non-discharge of service tax - extended period invoked, service tax demanded - penalties imposed u/ss 77 and 78 of Finance Act, 1994 - appellant providing taxable...

Taxability of Income in India - international taxation, permanent establishment (PE), and treaty benefits under the India-UK Double Taxation Avoidance Agreement (DTAA)....

Accrual of Income in India - Dependent Agent - PE in India or not? - DR has not brought on any material to show that RGA Services has utilized its assets or assumed any...

Quick Updates: