The assessee company, incorporated under laws of Singapore\u00a0 is engaged\u00a0 in\u00a0 trading operations of various products equipment\u2019s in India. Assessee established a liaison office in India for preparatory and auxiliary\u00a0 services, including market research and liaison activities. AO held that liaison office\u00a0 Involved in preparatory and auxiliary activities but also involved in ascertaining customer requirements, price negotiations obtaining of purchase orders etc therefore\u00a0 constituted PE in India in terms of Art 5 of India-Singapore DTAA. On\u00a0 appeal the Tribunal held that from the records that employees of assessee liaison office were engaged in marketing, sales promotion and market research activities which were sine qua for trading business . Tribunal also held that\u00a0 liaison office is\u00a0 also involved in ascertaining customer requirements, price negotiations obtaining of purchase orders etc\u00a0 Accordingly the Tribunal affirmed the order of AO and held that liaison office constituted PE in India and profit attribution has to be\u00a0 taxable in India. (AY. 2002-03 to 2007-08)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Liaison office-Involved in preparatory and auxiliary activities but also involved in ascertaining customer requirements, price negotiations obtaining of purchase orders etc- Constituted PE in India and profit attribution has to be done-DTAA-India-Singapore. [S. 92, Art. 5]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10746","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2Nk","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10746","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=10746"}],"version-history":[{"count":3,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10746\/revisions"}],"predecessor-version":[{"id":19226,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10746\/revisions\/19226"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=10746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=10746"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=10746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}