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Seminal Decision of the Delhi High Court on Constitution of Service Permanent Establishment December 10, 2025
Published in: TaxBuzz
DISCLAIMER: The material contained in this publication is solely for information and general guidance and not for advertising or soliciting. The information provided does not constitute professional advice that may be required before acting on any matter. While every care has been taken in the preparation of this publication to ensure its accuracy, Vaish Associates Advocates neither assumes responsibility for any errors, which despite all precautions, may be found herein nor accepts any liability, and disclaims all responsibility, for any kind of loss or damage arising on account of anyone acting / refraining to act by placing reliance upon the information contained in this publication.
We are pleased to share with you a copy of our in-house publication – “TaxBuzz”, wherein we have analysed the recent ruling of Delhi High Court in the case of CIT v. Clifford Chance Pte. Ltd.: ITA No. 353/2025 and 354/2025 wherein the Hon’ble High Court held 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, the profits of the non-resident taxpayer in India.
Further, for computation of the number of days spent in India for determining constitution of Service PE in terms of Article 5(6)(a) of the DTAA, the Hon’ble High Court held that, the days on which the employees of the taxpayer were on vacation and the days spent in India on business development needs to be excluded.
We trust that you will find the same useful.
For any details and clarifications, please feel free to write to:
Mr. Aditya Vohra, Partner at [email protected]
Mr. Kunal Pandey, Principal Associate at [email protected]
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