India-Singapore Tax Treaty: Delhi Tribunal Clarifies Service PE

Digitalization has been allowing foreign service providers to render services to Indian clients through online modes such as email, video conferencing, etc., without necessitating physical presence of its employees in India. The present version of service PE definition under India’s tax treaties may not be sufficient to deal with services provided remotely. The March 14, 2024 ruling of the Delhi bench of the Income-Tax Appellate Tribunal (Delhi Tribunal) supports the position that, until the tax treaty is amended to include the concept of virtual service PE, the ambit of service PE under the tax treaty cannot be extended to remote ...