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Accountancy and Taxation
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Permanent Establishment post Multi-Lateral Instruments
- March 22, 2021
- Posted by: Ajay Chaurasia
- Category: Accountancy and Taxation
No CommentsAccording to Article 5 of Double Taxation Avoidance Agreement (DTAA) and the concepts underpinning Permanent Establishment in India, any profits of an enterprise of one Contracting State are taxable in the other state, only if the enterprise maintains a Permanent Establishment in the second country, and only for profits are attributable to that Permanent Establishment. Thus, a Permanent Establishment is the legal compromise between your source country and resident country for the purposes of taxation of business profits.