1. Introduction

In a recent decision, the Indian Income Tax Appellate Tribunal (ITAT) dealt with an issue as to whether a Chinese company’s ‘joint bidding’ for projects along with its Indian subsidiary could lead to the former’s dependent agency permanent establishment in India. In that case, the ITAT also dealt with the issue as to whether use of the Indian subsidiary’s office premises by the Chinese company’s employees during their visits to India could give rise to a fixed place permanent establishment in India.

This article analyzes that judicial precedent in detail.