Whether secondment of employees constitutes a Fixed Place Permanent Establishment [“PE”] in India within the meaning of Article 5 of the Double Tax Avoidance Treaty between India and Korea

(i) Although information was exchanged and plans and strategies for the Indian market were also discussed, none of the activities undertaken by those seconded employees could be said or construed to be the carrying on or the conduct of business of Samsung Korea from the premises of SIEL. There is no evidence of any activity of the global business of Samsung Korea being conducted in India. The seconded employees were engaged in assisting SIEL in its business in India. The mere fact that marketing strategies and
future plans pertaining to the business of the Indian subsidiary were also discussed and deliberated upon by Samsung Korea, would not lead to a PE coming into existence.

(ii) Since the secondment of employees has not been found to be for the furtherance of the business or enterprise of the respondent. Those seconded employees were not discharging functions or performing activities connected with the global enterprise of the assessee. Their placement in India was with the objective of facilitating the activities of SIEL. Collection of market information, collation of data for development of products, market trend studies or exchange of information would not meet the qualifying benchmarks of a PE.