Case Law Analysis
|Income Tax Appellate Tribunal
India-US DTAA Service PE | Solar Days, Not Cumulative Man-Days, Determine 90-Day Threshold : ITAT Delhi
ITAT Delhi clarifies that only unique solar days of employee presence in India count toward the 90-day threshold for Service Permanent Establishment under Article 5(2)(l) of the India-US DTAA, rejecting the Revenue’s cumulative man-day approach. This ruling impacts foreign companies providing services in India, ensuring tax liability is determined by actual presence rather than aggregated workdays.