Recently, Hon’ble Delhi Income-tax Appellant Tribunal (‘ITAT’) has pronounced the ruling in the case of Clifford chance PTE Ltd, wherein it has been held that the concept of virtual service Permanent Establishment (‘PE’) in the OECD Interim Report 2018 on BEPS Project “Tax challenges arising from Digitalisation” has not been officially endorsed by India. Therefore, the existing service PE provision outlined in the India-Singapore DTAA, which necessitates physical service delivery in India, should be exclusively applied.      

In the attached newsflash, we have summarised the ruling pronounced by the Hon’ble Delhi ITAT. Hope you would find the same useful.