Foreign Entity Doing Business Through Temporary Premises In India Liable To Tax : Supreme Court Rejects Hyatt International's Appeal

The Supreme Court rejected Hyatt International's appeal, ruling that a "foreign entity doing business through temporary premises in India is liable to tax." The apex court affirmed that if a foreign company establishes a 'permanent establishment' (PE) in India, even through temporary or limited presence, and conducts business operations, it becomes liable for income tax in India. This landmark decision clarifies the interpretation of 'permanent establishment' under tax treaties, impacting multinational corporations and ensuring that foreign entities cannot avoid tax obligations by operating through transient or seemingly limited setups.