The recent and much discussed judgment pronounced by the Supreme Court of India in the case of DIT v Morgan Stanley & Co (MS Case), purports to have rendered a degree of finality to certain issues relating to the formation of Permanent Establishment (PE) and income tax liability of foreign enterprises in connection with the utilization of the services of a business process outsourcing (BPO) unit.
Partner
Titus & Co
In the MS Case, Morgan Stanley & Co (MSCo) had established a subsidiary in India by the name Morgan Stanley Advantage Services (MSAS). MSAS acted as a captive BPO unit for MSCo and other MSCo group companies.
One of the main issues under consideration was whether by virtue of its activities, MSAS constituted a PE for MSCo in India.
The Supreme Court dealt with the issues of whether MSAS constituted a Fixed Place PE or an Agency PE, or a service PE for MSCo in India.
The judgment has important implications for foreign enterprises outsourcing part of their activities to BPO units in India.
You must be a
subscribersubscribersubscribersubscriber
to read this content, please
subscribesubscribesubscribesubscribe
today.
For group subscribers, please click here to access.
Interested in group subscription? Please contact us.
你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章，欢迎成为我们的订阅会员成为我们的订阅会员。
Baljit Singh Kalha is a partner at Titus & Co, Advocates and may be contacted at: bskalha@titus-india.com. Niranjan Raj is an associate at Titus & Co, Advocates and may be contacted at nirajanraj@titus-india.com.
