India's new test for Permanent Establishment: Control over Presence

The Hyatt case has reignited a debate over what constitutes a permanent establishment, with courts increasingly focusing on the 'form over substance' principle

For years, whether or not a multinational company in India had to pay taxes hinged on one overarching question: Do they have a permanent establishment (PE) here? If the answer was no, the company either did not pay any taxes or would have to pay a flat tax with no examination of profit. But if a physical office existed, the company would have to file full tax returns, maintain books, undergo audits, and pay profit-based tax,  making PE status one of the most contested issues in cross-border taxation in India. 

 Now, following a landmark ruling by