For the purpose of computing the threshold time limit under the provisions of article 5(2)(i) of the Indo-Mauritius Tax Treaty, what is to be taken into account is activities of a foreign enterprise on a particular site or a particular project, or supervisory activity connected therewith, and not on all the activities in a tax jurisdiction as a whole.
· When aggregation is not specifically provided for in the relevant PE definition clause, as in the case of Indo-Mauritius Tax Treaty, normally it cannot be open to the Tribunal to infer the application of aggregation principle.
ITAT, BENCH ‘L’ MUMBAI
ADIT (Int’l Taxation)
v.
Valentine Maritime (Mauritius) Ltd.
ITA No. 1532/Mum/2005
April 5, 2010
