Delhi High Court rejects concept of Virtual Service PE de hors specific clause in DTAA

The Delhi High Court in the case of Clifford Chance Pte. Ltd. (“taxpayer”) dismissed Revenue’s appeals against the Tribunal order, holding that in absence of a specific clause in the India-Singapore DTAA, it was not open to the tax authorities to import the concept of Virtual Service Permanent Establishment into the India-Singapore DTAA to bring to tax profits of the non-resident taxpayer in India.

The High Court further held that in computing the number of days spent in India for determining the constitution of Service PE in terms of Article 5(6)(a) of the DTAA, the days on which the employees of the taxpayer were on vacation and the days spent in India on business development shall be excluded. Also, in case of common days spent by employees, the number of days shall be computed on an overall basis and not on the basis of man days spent.

The team from Vaish Associates Advocates, comprising Mr. Aditya Vohra, Mr. Kunal Pandey and Mr. Tanmay Dhakras, Advocates, briefed Mr. Ajay Vohra, Senior Advocate.

For any further information/clarification, please feel free to write to:

Mr. Aditya Vohra at [email protected] and Mr. Kunal Pandey at [email protected].

Customs and GST Alert – December 2025

We are pleased to share with you our latest Customs and GST Alert, covering recent judgments and regulatory updates.

We trust that you will find the same useful.

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India Notifies Four Transformative Labour Codes Consolidating 29 Central Laws – A Landmark Reform in Labour Governance

In a major structural overhaul of India’s labour regulatory regime, the Government of India has announced the enforcement of the four consolidated Labour Codes, Code on Wages (2019), Industrial Relations Code (2020), Social Security Code (2020), and Occupational Safety, Health and Working Conditions Code (2020), effective 21 November 2025.

These reforms streamline 29 existing Central labour laws into a modern, unified framework aimed at strengthening worker welfare, enhancing social security coverage (including for gig and platform workers), boosting women’s workforce participation, and simplifying compliance through single registration and licensing systems. Importantly, the existing labour laws and subordinate rules will remain in force during the transitional period, until corresponding rules and schemes under the new Codes are notified.

This marks a pivotal shift towards a more formal, secure and future-ready labour ecosystem aligned with evolving work structures and economic growth priorities.

For any clarification, please write to [email protected]

Supreme Court Clarifies Scope of “Urgent Interim Relief” under Section 12A of the Commercial Courts Act

In Novenco Building and Industry A/S v. Xero Energy Engineering Solutions Pvt. Ltd. & Anr. (2025 INSC 1256), the Supreme Court held that in cases of continuing infringement, urgency must be assessed based on the nature of the alleged wrong and its ongoing impact, not merely on the time taken to file the suit.

The Court clarified that while pre-institution mediation under Section 12A is mandatory, plaintiffs facing continuous infringement and potential irreparable harm may seek direct judicial relief without it.

This decision provides clarity on interpreting “urgent interim relief” and reinforces the right to prompt legal protection in ongoing IP disputes.

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