Articles 5 and 7 of India-Netherlands DTAA – Consideration received for the use of a digital platform hosted outside India by users to book accommodation did not constitute a fixed or dependent agent permanent establishment.

3. [2026] 183 taxmann.com 201 (Delhi - Trib.)

Booking.Com B.V. vs. ACIT (International Taxation)

A.Y.: 2018-19

Dated: 06.02.2026

Articles 5 and 7 of India-Netherlands DTAA – Consideration received for the use of a digital platform hosted outside India by users to book accommodation did not constitute a fixed or dependent agent permanent establishment.

FACTS

The Assessee was a tax resident of the Netherlands. It held a valid tax residency certificate (“TRC”). The Assessee had developed a digital platform that showed the availability of hotels/guesthouse accommodation to users and enabled them to make reservation. The users and hotels directly entered into contracts for accommodation, and the Assessee acted merely as an intermediary. The Assessee was entitled to a commission, which was payable only after the user made payment for the accommodation, which was not refundable. The platform was hosted outside India.

For the relevant year, the Assessee did not furnish a return of income (“ROI”). Annual Information Return (“AIR”) and Form 26AS of the Assessee reflected certain transac