eBay International AG v DDIT [IT APPEAL NO. 8907 (MUM.) OF 2010 dated 11.09.13] Mumbai ITAT Background: The Assessee is a company incorporated under law of Switzerland and is a tax resident of Switzerland. The assessee operated India specific websites (www.ebay.in and www.b2motors.ebay.in) that provides an online platform for facilitating the purchase and sale of goods and services to users based in India. The assessee has entered into marketing support agreements with eBay India and eBay Motors which are eBay group companies, for availing certain support services in connection with its Indian specific websites. Assessee earned revenues amounting to Rs. 12,00,39,045/- from the operations of these websites during the year. The assessee contended that these revenues are taxable as business profits in India as per the provisions of Article 7 of the Treaty only if the assessee has a permanent establishment (‘PE’) in India as per provisions of Article 5 of the Treaty i.e. DTAA. The assessee contended that did not have any PE in India and as such no amount would be taxable in respect of the consideration received from the operations of the above mentioned websites.
Article 7
DDIT v Toyo Engineering Corpn [2012] 22 taxmann.com 18 (MUM. – ITAT) The assessee was an engineering company incorporated in and tax resident of Japan. During the year it was, inter alia engaged in executing certain Project Management Contracts with MRPL, HPL and CFCL. On the perusal of these services, it can be seen that the assessee received consideration towards project management contracts on an overall basis towards (i) Project Management Services ; (ii) Local engineering supervision ; (iii) Construction management and supervision services and ; (iv) Start-up assistance services.