KOHLER CO. vs DCIT, INTERNATIONAL TAXATION, CIRCLE1(2), BENGALURU

Whether reimbursement of expenses incurred by the assessee on behalf of Indian associated enterprises on a cost-to-cost basis without any mark-up is taxable in India as fees for technical services or as business profits through a service permanent establishment? --- Held: No, the receipts are pure reimbursements and no income accretes to the assessee. Whether a service permanent establishment under Article 5(2)(l) of the India-USA DTAA exists where services are not furnished or performed in India through employees or other personnel of the foreign enterprise? --- Held: No, the cumulative conditions of Article 5(2)(l) are not satisfied.