| COURT: | ITAT Kolkata |
| CORAM: | Dr. A. L. Saini (AM), N. V. Vasudevan (JM) |
| SECTION(S): | 9(1)(vi), 9(1)(vii), Article 12, Article 5 |
| GENRE: | International Tax |
| CATCH WORDS: | Fees for technical services, make available, Permanent Establishment, royalty |
| COUNSEL: | S. K. Agarwal |
| DATE: | February 8, 2017 (Date of pronouncement) |
| DATE: | February 20, 2017 (Date of publication) |
| AY: | 2010-11 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| Entire law on Permanent Establishment, Force of Attraction principle, taxability of software embedded in hardware as royalty, make available of technical services etc explained (all important judgements referred) | |
Some provide for taxing profits/income from all transactions whether they are attributable to PE or not or whether they are of the same kind of transactions carried on by the PE or not, which is referred to as “Full Force of Attraction” principle. As to which principle is applicable in a given case depends on the clauses of the convention between two countries. Article 7(1) of the DTAA between India and Netherlands provides for taxing profits of the enterprise in the other state only to the extent they are attributable to the PE in the other state, adopting “No Force of Attraction” principle
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