Client Industry: Information Technology
Background :
The client was Swiss based company. The client had a project in India in relation to which it was rendering technical services to its client in India. In rendering such services, the client’s personnel visited India but none of the them stayed in India for more than the threshold limit prescribed for creation of PE. However, adjustment was made by the Learned Assessing officer to the total income of the client treating it as a PE in India and consequently business income was taxed at a higher rate which is applicable in case of PE. The Client didn’t agree with the adjustment and approached us to file an appeal and represent them before the authority.
Our Approach :
- We reviewed all the agreements, invoices, attendance register of the client’s personnel for the fact finding
- We further, reviewed the relevant provisions of Income tax Act and relevant tax treaty and drafted the appeal to be filed after discussing the same with the management
- Our direct tax team represented the client before DRP and ITAT from time to time
Outcome/Impact :
The outcome of the case was in our favour at ITAT level and the client was relieved from paying excess tax