The Indian Income Tax Appellate Tribunal (ITAT) issued its decision on 9 November 2012 (made public on 20 December 2012) in the case of DCIT v. Poompuhar Shipping Corporation Ltd (2012-TII-229-ITAT-MAD-INTL) that the provision of services outside India by a non-resident company in China was in the nature of routine maintenance and repairs which would not be taxable in absence of a permanent establishment in India.
(a) Facts. The Taxpayer (i.e. Poompuhar Shipping Corporation Ltd.), an Ind…