Permanent establishment in India: when India can tax a foreign company with no Indian entity (employees, employer of record, agents)

Short answer: India can tax a foreign company's business profits without any Indian entity if it has a permanent establishment (PE): a fixed place at its disposal, an agent who concludes or secures its contracts, personnel serving Indian customers beyond the treaty day limit (90 days under the UK and US treaties), or a long-running project [1][2][3]. An employer of record (EOR) changes who employs your India team, not whether their work creates a PE: engineers serving the group are usually low risk, a sales closer is not. A PE means tax of up to 38.22% on attributable profit, Indian filings and up to five back years [11][25], and an Indian subsidiary paid at arm's length is the usual cure [18].

Who this is for: CFOs, heads of tax and general counsel of UK, US and European companies doing business in India through staff, an EOR, secondees or agents. Choosing an EOR provider? This is not that page.

How India taxes a foreign company with no Indian entity

Tax year 2026-27 is the first under the Income-tax Act 2025; earlier years stay under the 1961 Act (s.536(2)(c)) [28]. A non-resident is taxed on income from a "business connection" (s.9(9)): operations in India, an agent who "habitually concludes contracts or habitually plays the principal role" leading to them (s.9(9)(b)), or significant economic presence (SEP, s.9(9)(d): Indian payments of INR 2 crore or more a year or 300,000 Indian users), and only on the income reasonably attributable to India (s.9(9)(f)) [6][7]. Narrow Schedule IV exemptions cover foreign companies in electronics contract-manufacturing arrangements with Indian manufacturers, including component supply from bonded warehouses, up to tax year 2040-41 under the Taxation and Other Laws (Amendment) Act 2026 [30].

A treaty resident is taxed on business profits only through a treaty PE, and only on attributable profit (s.159(4)) [8]. That needs a tax residency certificate (TRC) and Form 41 (formerly Form 10F); since Tiger Global (Supreme Court, 15 January 2026) a TRC is necessary but not conclusive [9][10].

Permanent establishment thresholds: UK–India and US–India tax treaties, UAE, Netherlands, Singapore

India accepted the MLI's wider agent test, but it bites only where the partner did too. A signed 2026 India–France protocol adds a service PE; it is not yet in force [23].

Fixed place: Hyatt changed the risk

A place "at the disposal" of the enterprise is enough; exclusive possession is not (para 17). In Hyatt International Southwest Asia (Supreme Court, 24 July 2025), a UAE company with no Indian office, and no individual staying beyond the treaty's nine-month threshold (para 21), had a fixed-place PE because its executives' "frequent and regular" visits controlled Indian hotels; "legal form does not override economic substance" (para 19). Profits were attributable despite global losses (para 23) [15].

What does not count: preparatory or auxiliary activity

Every treaty excludes storage, display, purchasing, information-gathering and other "preparatory or auxiliary" activity [1][2][3][4]. For UK and Dutch companies the MLI anti-fragmentation rule now applies: an EOR team's and an Indian group company's activities are assessed together [1][4].

Dependent agent

An agent working "wholly or almost wholly" for one enterprise is not independent [1][2][3]. India's domestic "principal role" test reaches UK, US or UAE residents only if treaty entitlement fails [6].

Service PE India: physical days, counted once

Only physical service days count, and a day counts once however many staff work it. In Clifford Chance (Delhi High Court, December 2025; Singapore treaty), holiday, business-development and shared days were excluded, leaving 44 of 120 days [16]. The same court reportedly rejected a "virtual" PE under the UK treaty in EY (EMEIA) [17]. Staff living in India are not virtual.

Selling into India from a UAE regional hub

UAE groups get 9-month service and project limbs, and the UAE treaty has no fees-for-technical-services article, so service fees are generally taxable in India only through a PE [3]. But Hyatt is a UAE case: regular visits with real control created a PE without long stays. Manage decision rights, not only days.

Employer of record India: does an EOR create a permanent establishment?

An EOR is an Indian company that employs your hire for a fee. No statute regulates it, and EOR providers' own guidance accepts it carries PE risk [24]. We know of no Indian ruling on an EOR structure as such. An EOR hire in India can create a PE in three ways:

1. Dependent agent. A sales lead who negotiates price, secures orders or closes deals acts for you, whoever pays the salary.
2. Fixed place. A home office or co-working desk you fund, cite on contracts or use for core management can be at your disposal [15].
3. Service PE. Services to Indian customers through "employees or other personnel" under your direction count towards the 90-day UK and US limits [1][2].

The safe zone: engineers and back-office staff serving the group or foreign customers, with no contract authority, funded premises or Indian customer role.

Secondments, GCCs and the arm's-length cure

An Indian subsidiary or global capability centre (GCC) is not its parent's PE merely because it is controlled [1][2]. Once it is paid at arm's length, nothing further is attributable to the parent (Morgan Stanley, Supreme Court 2007; Progress Rail, Delhi High Court 2024, Revenue's special leave petition dismissed 21 November 2025) [18].

Secondees are the weak point: UK staff working for the subsidiary over 30 days in any 12 months, or US staff providing any non-"included" services to it, can create a service PE [1][2]. Services taxed as FTS or included services (10%–15% gross) fall outside that limb; others risk 35%-plus on net profit. The 2026 cases turn on control:

• Goldman Sachs International (Mumbai Tribunal, reported May 2026): secondees under the Indian entities' complete control; reimbursements were salary, not FTS [20]. If the Indian entity is the economic employer, the foreign company arguably furnishes no services at all.
• Ernst & Young U.S. LLP (Delhi High Court, 18 June 2026): the US firm kept a lien and the Indian firms could end the secondment but not the employment; reimbursements were FTS, service PE left open [19].

Draft secondments so the Indian entity directs the work, can terminate and bears the cost. For transfer pricing in India, the safe harbour in the Income-tax Rules 2026 (notified 20 March 2026; rules 89 and 91, elected in Form 49 for a five-year block) accepts a 15.5% margin on cost for software development, ITeS, KPO and software R&D services up to INR 2,000 crore of revenue; sales and marketing support are not eligible services and must be benchmarked [22].

Foreign company tax rate India: what a PE costs

Worked example: a UK SaaS company with six EOR hires

Illustrative only; FX: INR 127 = GBP 1, INR 96 = USD 1, INR 107 = EUR 1 (FBIL reference rates, 12 October 2026, rounded) [32]. Northwind Ltd, a UK software company, sells INR 40 crore (GBP 3.15m) of subscriptions a year to Indian customers at a 20% margin: profit INR 8 crore. Through an EOR it employs four engineers, a customer-success manager and an "India sales director" who negotiates discounts and sends contracts to London to sign.

Scenario A: as structured. The sales director habitually secures orders for Northwind alone, so a dependent-agent PE under UK Article 5(4) is arguable [1] (see UK–India double tax treaty: guide for UK companies). At 37.128%:

That is a floor: years before 2024-25 bore a 40% base rate. A 50% penalty on the 26% figure adds INR 1.93 crore (GBP 152,000), plus interest and customers' withholding defaults. UK relief will not refund Indian tax above the UK rate. A US company would also face force of attraction [2]; see US–India tax treaty: guide for US companies.

Scenario B: fix the role, keep the EOR. A UK deal desk sets prices and accepts orders; the India role becomes lead generation and demos, with an evidence file. Exposure falls towards nil; the cost is slower closing on top of existing EOR fees (vendor-quoted USD 99–699 per employee per month) [24].

Scenario C: Indian subsidiary. Northwind India Pvt Ltd employs all six: engineers (cost INR 1 crore) at the 15.5% safe-harbour margin, the two customer roles (INR 50 lakh) at an illustrative benchmarked 10%. Profit of INR 20.5 lakh bears 25.168%: INR 5.16 lakh (GBP 4,100) [11][22]. As a limited-risk distributor earning 5% on INR 40 crore instead, it pays INR 50.3 lakh (GBP 39,600); Northwind's software receipts are generally not royalties after Engineering Analysis (2021), but check GST on the import [26]. Either way the parent's attribution falls away [18] if UK staff work under 30 days a year for the subsidiary and it does not conclude Northwind's contracts.

With one sales closer in India, "no entity" is the riskiest option: about INR 5 lakh a year of certain tax against an arguable INR 45–77 lakh, plus back years. See India corporate tax rate for foreign companies: subsidiary vs branch vs PE.

Decision table: how you are present in India

Permanent establishment risk: common mistakes (ranked)

1. A sales closer on an EOR: the most direct route to an agency PE.
2. Uncounted related-party days: 30 (UK) or none (US) [1][2].
3. Counting days per person: overlapping visits do not reset the clock [16].
4. Paperwork over conduct: Hyatt looks at what people actually do [15].
5. Lost treaty entitlement: without TRC and Form 41, SEP applies [7][9].
6. Migrating an EOR team to a new subsidiary without reviewing past years.
7. Non-tax costs: GST under reverse charge on secondments with a foreign lien (Northern Operating Systems, 2022) [19]; Labour Codes duties for contract staff once you have an Indian establishment [27]; IP assignment from the EOR.

Permanent establishment risk in India: checklist to forward

1. Map everyone in India: employer, role, customers, days, authority.
2. Confirm TRC and Form 41 for the contracting entity (see Form 10F (now Form 41) and tax residency certificate).
3. Remove contract and pricing authority from India roles, or plan an entity (see Invest in India: choosing a holding company jurisdiction (hub)).
4. Log service days per activity, once per day however many staff; exclude holiday and business-development days.
5. Review secondments for lien, termination, control and cost.
6. Confirm intercompany pricing and Form 48.
7. Model an Indian entity's cost against the PE range, including back years.

How ATB Corporate can help

ATB Corporate advises companies and investors on entering, structuring and operating in India and the UAE: choosing the entry route and holding structure, tax and exchange-control planning, regulatory compliance, and setting up and running the local business. To discuss your plans, contact ATB Corporate.

FAQ

Does hiring through an employer of record in India create a permanent establishment?

Hiring through an employer of record in India does not automatically create a permanent establishment, because the EOR changes who employs your team, not what their work does. A PE can still arise where the hire has contract authority, provides services to Indian customers beyond the treaty day limits, or works from a company-controlled workplace [1][2][15]. Engineers and back-office staff serving the group, with none of these features, are usually low risk.

How many days can employees work in India before a permanent establishment arises?

Employees of a UK or US company can work in India for 90 days of activity in any 12 months before a service permanent establishment arises, and a UAE company's staff for 9 months. For services to a related enterprise, the UK limit falls to 30 days and the US treaty allows none [1][2][3]. Only physical days count, and a day counts once however many staff work it [16]; contract authority can create an agency PE whatever the day count.

Can India tax a UK, US or UAE company with no office in India?

Yes, India can tax a UK, US or UAE company with no office in India if an agent, staff or premises at its disposal create a permanent establishment there. In Hyatt (2025), the Supreme Court found a fixed-place PE for a UAE company with no Indian office because its executives' frequent and regular visits controlled Indian hotels [15]. India then taxes only the profit attributable to that PE [8].

Is an Indian subsidiary or GCC a permanent establishment of its parent?

An Indian subsidiary or GCC is not a permanent establishment of its parent merely because the parent owns or controls it. Risk arises if parent staff direct work from its premises or the subsidiary concludes the parent's contracts. Once the subsidiary is paid at arm's length, nothing further is attributable to the parent (Morgan Stanley; Progress Rail) [18].

Does seconding staff to our Indian subsidiary create a PE or withholding tax?

Seconding staff to an Indian subsidiary can create a service PE and withholding tax where the foreign employer keeps control of the secondees and a lien on their employment [19][20]. In Ernst & Young U.S. LLP (2026) the reimbursements were fees for technical services; in Goldman Sachs International (2026), with the Indian entities in complete control, they were salary. Draft secondments so the Indian entity directs the work, can terminate and bears the cost.

What tax rate applies to a permanent establishment in India?

The tax rate on a permanent establishment in India is 36.4%–38.22% of attributable profit in tax year 2026-27: a 35% base rate plus surcharge and 4% cess [11]. Minimum alternate tax of 14% of book profit acts as a floor [12]. Indian customers must also withhold at full rates unless the payee provides its TRC, Form 41 and a no-PE declaration, or a Form 128 certificate [14].

Can remote work for Indian clients create a "virtual" PE?

Remote work for Indian clients does not create a "virtual" permanent establishment under the Singapore or UK treaties on current Delhi High Court authority, because only physical service days in India count [16][17]. Where no treaty protects the company, India's significant economic presence rule can still apply to Indian payments of INR 2 crore or more a year or 300,000 Indian users [7]. Staff living in India are not virtual.

Related reading

• India withholding tax rates 2026 and how to repatriate profits
• Transfer pricing, tax and employment for an India GCC
• GCC operating model and entity in India
• Setting up a global capability centre in India
• India GCC tax structuring
• India–UAE business structuring
• India business set-up
• FDI in India: rules, routes and approvals (2026) (ATB Legal)

Sources

1. HMRC, 2020 UK–India synthesised text of the MLI and the 1993 Convention (Art 5(2)(j)–(k), 5(3), 5(4), 5(5), 5(7); MLI boxes Arts 4, 6, 7, 11, 13, 15, 16) — https://www.gov.uk/government/publications/india-tax-treaties/2020-uk-india-synthesised-text-of-the-multilateral-instrument-and-the-1993-double-taxation-convention-in-force (read 11 Oct 2026)
2. India–USA Convention 1989, official text (Arts 5(2)(k)–(l), 5(3)–(6), 7(1), 7(3), 12) — https://incometaxindia.gov.in/DTAA/108690000000000099.htm ; text with protocol and MoU — https://www.icnl.org/research/library/india_indiatax/ (read 11 Oct 2026)
3. Income Tax Department, India–UAE DTAA synthesised text (Art 5(2)(h)–(i), 5(3)–(5); MLI boxes Arts 6, 7, 16, 17) — https://incometaxindia.gov.in/DTAA/Synthesized-text-India-UAE-DTAA.htm (read 11 Oct 2026)
4. Income Tax Department, India–Netherlands synthesised text (Art 5; MLI boxes Arts 4, 6, 7, 9, 10, 13, 14, 15) — https://www.incometaxindia.gov.in/w/netherlands-synthesised-text-1 (read 11 Oct 2026)
5. India–Singapore DTAA (1994, as amended; Art 5(6)): Khaitan & Co ERGO (12 Dec 2025, see [16]); VJM Global, Singapore–India tax treaty (9 Apr 2026) — https://www.vjmglobal.com/feeds/blog/singapore-india-tax-treaty
6. Income Tax Department, s.9 Income-tax Act 2025 (official text: s.9(9)(a) business connection; 9(9)(b)(i)(A) "habitually concludes contracts or habitually plays the principal role"; 9(9)(c) independent agents; 9(9)(d) SEP; 9(9)(f) attribution) — https://www.incometaxindia.gov.in/w/section-9-1 (read 12 Oct 2026); Taxmann (1 Sep 2026) — https://www.taxmann.com/post/blog/section-9-income-deemed-to-accrue-in-india
7. Income Tax Department, Rule 13, Income-tax Rules 2026 (SEP thresholds) — https://www.incometaxindia.gov.in/w/rule-13-36 ; Gazette text, Income-tax Rules 2026, G.S.R. 198(E) of 20 Mar 2026 (in force 1 Apr 2026; Rule 13: INR 2 crore / 300,000 users) — https://www.incometaxindia.gov.in/documents/d/guest/en-notified-it-rules-2026-20-03-2026-pdf (read 12 Oct 2026)
8. Income Tax Department, s.159 Income-tax Act 2025 — https://www.incometaxindia.gov.in/w/section-159-89
9. Income Tax Department, Form 41 FAQs (s.159(8), Rule 75) — https://www.incometaxindia.gov.in/documents/d/guest/form-41-faqs
10. Argus Partners, Supreme Court in AAR v Tiger Global International II Holdings (CA 262/2026, 15 Jan 2026), 16 Jan 2026 — https://www.argus-p.com/updates/updates/supreme-court-denies-tax-treaty-relief-under-india-mauritius-dtaa-for-tiger-globals-flipkartwalmart-exit/
11. Income Tax Department, First Schedule (Finance Act 2026) — https://www.incometaxindia.gov.in/w/first-schedule-104 ; foreign-company rates — https://incometaxindia.gov.in/Documents/Left%20Menu/tax%20rates-foreign.htm ; Khaitan & Co, Budget 2026 direct tax proposals (2 Feb 2026) — https://www.khaitanco.com/sites/default/files/2026-02/KCO%20-%20Budget%202026-Direct%20Tax%20Proposals%20-%202%20February%202026.pdf
12. Income Tax Department, "MAT and AMT" (as amended by Finance Act 2026) — https://www.incometaxindia.gov.in/w/mat-and-amt ; Income Tax Department, FAQs on Budget 2026 ("reduce the rate of MAT from 15% to 14%"; no new MAT credit) — https://www.incometaxindia.gov.in/documents/20117/15766092/FAQs-Budget-2026.pdf/ff3d0e10-88a0-b11f-3c27-b58375974227 (read 12 Oct 2026); PwC Worldwide Tax Summaries, India — Taxes on corporate income (MAT 14% from 1 Apr 2026; 36.40%–38.22% effective; reviewed 11 May 2026) — https://taxsummaries.pwc.com/india/corporate/taxes-on-corporate-income (read 12 Oct 2026); Income Tax Department, s.206 Income-tax Act 2025 (s.206(1)(l)(i)) — https://www.incometaxindia.gov.in/w/section-206-75
13. Income Tax Department, s.60 Income-tax Act 2025 (head-office expenditure) — https://www.incometaxindia.gov.in/w/section-60-138
14. Income Tax Department, FAQs on forms under the Income-tax Rules 2026 (Forms 41, 48, 128; s.395) — https://www.incometaxindia.gov.in/w/faqs-on-forms-as-per-income-tax-rules-2026-1
15. Hyatt International Southwest Asia Ltd v Additional Director of Income Tax, 2025 INSC 891, CA 9766/2025 (with CAs 9767–9773/2025), SC, 24 Jul 2025 (Pardiwala and Mahadevan JJ; paras 13–25): judgment text — https://www.supremecourtcases.com/hyatt-international-southwest-asia-ltd-v-additional-director-of-income-tax/ (read 12 Oct 2026); Taxguru (10 Aug 2025) — https://taxguru.in/?p=1006537 ; KS&K (24 Jul 2025) — https://ksandk.com/md/tax/sc-hyatt-ruling-wake-up-call-for-mncs-operating-in-india/
16. CIT v Clifford Chance Pte Ltd (Delhi HC, ITA 353-354/2025, 2025 SCC OnLine Del 8771): Khaitan & Co ERGO (12 Dec 2025) — https://www.khaitanco.com/sites/default/files/2025-12/ERGO%20-%20Delhi%20HC%20Clifford%20Chance%20-%2012%20December%202025.pdf ; SCC Online blog (13 Jan 2026) — https://www.scconline.com/blog/post/2026/01/13/del-hc-rejects-clifford-chances-claim-of-virtual-service-pe-under-dtaa/
17. Press report, Ernst & Young (EMEIA) Services, Delhi HC (India–UK treaty), Outlook Business (15 Jan 2026) — https://www.outlookbusiness.com/corporate/delhi-hc-cancels-tax-withholding-order-on-eys-1750-cr-uk-payment
18. Alvarez & Marsal, Progress Rail Locomotive (Delhi HC 2024; SLP Diary 35563/2025 dismissed 21 Nov 2025) and PE case list: DIT v Morgan Stanley (2007) 7 SCC 1; ADIT v E-Funds IT Solution (SC 2017); Honda Motor (2018) 6 SCC 70; DIT v Samsung Heavy Industries (2020) 7 SCC 347; UAE Exchange Centre (2020) 9 SCC 329; Formula One (2017) 15 SCC 602 — https://www.alvarezandmarsal.com/node/89781 (5 Dec 2025); judgment texts: DIT v Samsung Heavy Industries (SC, CA 12183/2016, 22 Jul 2020; project office auxiliary under Art 5(4)(e) India–Korea) — https://itatonline.org/archives/dit-vs-samsung-heavy-industries-co-ltd-supreme-court-the-condition-precedent-for-applicability-of-fixed-place-permanent-establishments-under-article-51-of-the-double-taxation-avoid/ ; UOI v UAE Exchange Centre (SC, CA 9775/2011, 24 Apr 2020; liaison office preparatory or auxiliary under Art 5(3)(e)) — https://itatonline.org/archives/uoi-vs-u-a-e-exchange-centre-supreme-court-taxability-of-liaison-offices-under-dtaas-the-activities-carried-on-by-the-liaison-office-of-the-non-resident-in-india-as-permitted-by-the-rbi-demonstrate/ ; ADIT v E-Funds IT Solution (SC, 24 Oct 2017; subsidiary's support work no fixed-place or service PE) — https://itatonline.org/archives/adit-vs-e-funds-it-solution-inc-supreme-court-permanent-establishment-pe-under-article-5-of-dtaa-entire-law-on-concept-of-fixed-place-of-business-service-pe-and/ (all read 12 Oct 2026)
19. Alvarez & Marsal, Ernst & Young U.S. LLP (Delhi HC, 18 Jun 2026), 23 Jul 2026 — https://www.alvarezandmarsal.com/ja/node/96751 ; Trilegal, CIT (IT) v Ernst and Young U.S. LLP [2026] 187 taxmann.com 711 (Delhi) (lien and social-security benefits retained; reimbursements FTS under Art 12(4)(b) India–US; Centrica followed), 6 Jul 2026 — https://trilegal.com/knowledge_repository/secondment-recharges-under-scrutiny-delhi-high-court-reaffirms-cost-reimbursements-taxable-as-fees-for-technical-services/ (read 12 Oct 2026); Lakshmikumaran & Sridharan via Mondaq (20 Jul 2026), incl. Centrica 364 ITR 336 and Northern Operating Systems (SC 2022) — https://www.mondaq.com/cross-border-secondments-and-the-quest-for-the-true-employer/1819764
20. KPMG TaxNewsFlash, Goldman Sachs International v ACIT (ITAT Mumbai, ITA 6033/Mum/2025), 29 May 2026 — https://kpmg.com/us/en/taxnewsflash/news/2026/05/tnf-india-reimbursements-of-salary-costs-not-fees-for-technical-services-subject-to-withholding-under-uk-treaty-other-direct-and-indirect-tax-developments.html
21. itatonline, Travelport L.P. USA v CIT(IT) (SC 2023, (2023) 295 Taxman 6) — https://itatonline.org/digest/pcit-v-travelport-l-p-usa-2023-154-taxmann-com-95-delhihc-editorial-order-of-high-court-is-reversed-travelport-l-p-usa-v-citit-2023-295-taxman-6-sc/ ; GE Energy Parts Inc v ADIT (ITAT Delhi, ITA 671/Del/2011, 27 Jan 2017: fixed-place and dependent-agent PE through expatriates; 26% of profit attributed, applied as 2.6% of sales) — https://itatonline.org/archives/ge-energy-parts-inc-vs-adit-itat-delhi-permanent-establishment-entire-law-explained-on-whether-the-deputation-of-personnel-by-a-foreign-company-to-assist-the-indian-subsidiaries-in-negotiations-mark/ (read 12 Oct 2026)
22. KPMG US, India final Income-tax Rules 2026 notified 20 Mar 2026, effective 1 Apr 2026 ("mirror the draft released on February 8, 2026", with one-time threshold testing, withdrawal timelines and enhanced Form 49 disclosure) — https://kpmg.com/us/en/taxnewsflash/news/2026/03/india-transfer-pricing-income-tax-rules-2026.html (read 12 Oct 2026); Treelife, Safe harbour rules for IT/ITeS and captives (rules 86–93; rule 89(2) 15.5% on operating expenses for software development, ITeS, KPO and software contract R&D; INR 2,000 crore tested in year one of a five-year block; Form 49 to DGIT(Systems); withdrawal within six months of the first year) — https://treelife.in/legal/safe-harbour-rules-for-it-ites-and-captives/ (read 12 Oct 2026); PwC Worldwide Tax Summaries, India — Group taxation (March 2026 revision; five-year block for IT services) — https://taxsummaries.pwc.com/india/corporate/group-taxation (read 12 Oct 2026); KPMG US, draft rules (11 Feb 2026) — https://kpmg.com/us/en/taxnewsflash/news/2026/02/tnf-india-draft-rules-amending-transfer-pricing-safe-harbor-regime.html
23. Taxmann, India–France protocol (CBDT release 23 Feb 2026) — https://www.taxmann.com/post/blog/india-france-amend-dtaa-residence-country-gets-capital-gains-tax-rights/ ; Trilegal, direct tax quarterly milestones January–March 2026 — https://trilegal.com/knowledge-repository/trilegal-update-direct-tax-quarterly-milestones-january-march-2026/
24. Wisemonk, "Is EOR legal in India?" (6 Oct 2026) — https://www.wisemonk.io/blogs/is-eor-legal-in-india ; Asanify, State of India EOR 2026 — https://asanify.com/blog/state-of-india-eor-2026/ ; Ahlawat Advisory, EOR guide (21 Apr 2026, fee range) — https://ahlawatadvisory.com/employer-of-record-in-india-eor-guide/
25. Income-tax Act 1961, s.149 (as amended by Finance (No. 2) Act 2024), s.270A and s.270AA (as substituted by Finance Act 2026, cl. 20–21, from 1 Mar 2026), Income Tax Department — https://www.incometaxindia.gov.in/income-tax-act ; Finance Act 2026 (Act 4 of 2026, assent 30 Mar 2026; cl. 10 s.148 minimum 30-day reply; cl. 20–21 s.270A(11A) and s.270AA(1)–(3A): immunity where penalty is leviable under s.270A(9) on payment of additional tax of 100% of the tax on under-reported income, no appeal, application within one month; none once Chapter XXII proceedings begin) — https://www.incometaxindia.gov.in/documents/d/guest/finance-act-2026-pdf-1 (read 12 Oct 2026)
26. IBA, Engineering Analysis Centre of Excellence v CIT (SC, 2 Mar 2021) — https://ibanet.org/recent-indian-supreme-court-decision-characterisation-of-software-payments
27. PIB, Labour Codes in force from 21 Nov 2025 — https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2192463®=3&lang=2
28. Income Tax Department, FAQs on Transition Provisions under s.536 Income-tax Act 2025 (Q5: notices, assessment, reassessment and penalty proceedings for earlier years initiated on or after 1 Apr 2026 continue under the 1961 Act, s.536(2)(c); Q9, Q17: pending proceedings, s.536(2)(e)) — https://www.incometaxindia.gov.in/documents/20117/43120/FAQs-on-Transition-Provisions.pdf/2d93bf1c-70d8-faa0-e14a-5bdcde2474c6?version=1.0&t=1783337846336&download=true (read 12 Oct 2026)
29. PwC Worldwide Tax Summaries, India — Tax administration (reassessment within three years, or five years where evidence of escaped income of INR 5 million or more, with prior approval; reviewed 11 May 2026) — https://taxsummaries.pwc.com/india/corporate/tax-administration (read 12 Oct 2026); PwC, India — Significant developments (updated return after a reassessment notice at 10% additional tax, from 1 Mar 2026) — https://taxsummaries.pwc.com/india/corporate/significant-developments (read 12 Oct 2026)
30. India Briefing, Taxation and Other Laws (Amendment) Act 2026 (assent 17 Aug 2026; Schedule IV serial 13A/13G exemptions for foreign suppliers of electronics components to Indian contract manufacturers, to tax year 2040-41) — https://www.india-briefing.com/news/india-taxation-other-laws-amendment-act-2026-46597.html/ (read 12 Oct 2026)
31. ValutaFX, GBP/INR history 2026 (9 Oct 2026: 127.78; 2026 average 126.40) — https://www.valutafx.com/history/gbp-inr-2026 (read 12 Oct 2026)
32. Reserve Bank of India home page, FBIL reference rates as at 1 pm, 12 Oct 2026: USD 95.7485, GBP 126.9185, EUR 107.3022 — https://www.rbi.org.in/ (read 12 Oct 2026)
33. ATB Legal, Branch office vs liaison office in India (October 2026) — https://atblegal.com/blog/doing-business-in-india/branch-office-vs-liaison-office-india/

Disclaimer: This article is general information, not legal or tax advice. PE outcomes depend on facts, and Indian tax law and treaties change; verify against current law and take advice before acting.