August 2023
Article 5(3) and Article 5(4) of India — Singapore DTAA — The time for the calculation of 180 days does not start and end with the date of raising the first and last invoice. It depends upon the facts of each case. Time spent on different projects cannot be aggregated to compute the time threshold merely because the client and person performing work are the same.
By Geeta Jani | Dhishat B. Mehta | Bhaumik Goda
Chartered Accountants
4. Planetcast International Pvt Ltd vs. ACIT
[TS-389-ITAT-2023(Del)]
[ITA No: 1831/1832/Del/2022 & 451/Del/2023]
A.Ys.: 2018-19, 2019-20 & 2020-21
Date of order: 18th July, 2023
Article 5(3) and Article 5(4) of India — Singapore DTAA — The time for the calculation of 180 days does not start and end with the date of raising the first and last invoice. It depends upon the facts of each case. Time spent on different projects cannot be aggregated to compute the time threshold merely because the client and person performing work are the same.
FACTS
The assessee received two orders from A (an Indian Company) for projects located in Gurugram and Bengaluru. He obtained a quote from Original Equipment Manufacturer (OEM), shared it with A and placed an order with OEM on receipt of confirmation from A. Assessee claimed that the supply of equipment is not taxable in India as the title passed outside India and fees for installation and commission is not taxable as 183 days duration threshold relevant for trigger of installation PE is not crossed. AO held that assessee’s presence constituted construction PE and supervisory PE in India. For the calculation of 183 days, AO calculated the period starting from the date of the first invoice for the su
