ITAT adjudicated a tax dispute involving consultancy income from ...

Non-resident entity's tax dispute resolved through careful treaty interpretation of India-UAE DTAA, balancing income classification and PE considerations

April 25, 2025

Case Laws Income Tax AT

ITAT adjudicated a tax dispute involving consultancy income from a non-resident entity without permanent establishment (PE) in India. The tribunal examined treaty benefits under India-UAE Double Taxation Avoidance Agreement (DTAA), specifically Articles 7 and 22. Despite presenting a valid Tax Residency Certificate (TRC) for 2018 and earning marketing commission, the tribunal determined that Article 7 was inapplicable due to absence of PE. Consequently, the tribunal ruled the assessee eligible for benefits under Article 22 and directed the Assessing Officer (AO) to recompute the tax liability, effectively providing partial relief to the non-resident taxpayer by recognizing treaty protection mechanisms.

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ITAT adjudicated a tax dispute involving consultancy income from ...

Non-resident entity's tax dispute resolved through careful treaty interpretation of India-UAE DTAA, balancing income classification and PE considerations

April 25, 2025

Case Laws Income Tax AT

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