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Tax relief likely on creation of ‘permanent establishment’

Tax relief likely on creation of ‘permanent establishment’

India will provide relief to overseas companies with global income that may be subject to tax here because the presence of their key management personnel stuck in the country during the lockdown created a ‘permanent establishment’ or place of effective management in the country. The respite will be granted on a case-by-case basis.

The govt has exempted individuals by excluding their lockdown stay from residency calculation and it was widely expected that a similar concession would be given to companies.

“We can provide relief on a case-by-case basis,” an official with the Central Board of Direct Taxes said.

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