Secondment of Employees by Samsung does not Prove PE under Art.5 of India-Korea DTAA: Delhi HC

The Delhi High Court ruled that secondment of employees by Samsung does not create a Permanent Establishment (PE) under Article 5 of the India-Korea Double Taxation Avoidance Agreement (DTAA). The court examined whether the secondment of employees by Samsung in India created a PE under the DTAA. It found that secondment alone, without the exercise of control over the business activities or management of the Indian operations, does not trigger PE status. The court held that a PE requires a fixed place of business or a significant role in the business operations, which was not established in this case.