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13. [2026] 186 taxmann.com 526 (Delhi - Trib.)
Imax Theatre Services Ltd. vs ACIT (IT)
A.Y.: 2022-23 Dated: 13 May 2026
Article 5 of India-Canada DTAA – On facts, maintenance services rendered in India through an Australian vendor, without satisfying disposal and permanence test, did not constitute fixed place PE in India. Also, since physical presence of Australian vendor in India was less than 90 days, no service PE was constituted.
FACTS
The Assessee was a tax resident of Canada. Canadian tax authority had issued a tax residency certificate ("TRC") to it. The Assessee rendered maintenance services for IMAX theatres to Indian and global customers. The Assessee had engaged an Australian vendor to provide the services. Generally, the services were rendered remotely by accessing the systems. Sometimes, an employee of the vendor visited the premises of the customer. The LinkedIn profile of the vendor’s employee showed that he worked full-time for the Assessee.
On the basis of the LinkedIn profile of the employee of the vendor, the AO concluded that the activity of the Assessee constituted both a fixed place PE and a service PE. Therefore, he
