Fixed Establishment: The Indirect Tax Avatar

Abstract

As an ingredient of “permanent establishment”, the concept of “fixed place of business” has been in vogue in the international tax arena for long, perhaps even for more than a century. With the sheer passage of time, its nuances have been perfected to an extent that there are minimal avenues of differences on the nuances of “fixed place”. Nonetheless it is not without a reason that tax litigation is considered evergreen. The transmigration of this concept in the indirect tax sphere, referred to as “fixed establishment”, has however, resulted into different kind of doubts over the salient features of the concept and particularly whether there are any mutative variations on account of such transmigration. In this backdrop, this article seeks to explore the VAT dimension of fixed establishment concept.

Keywords: Fixed Establishment, Permanent Establishment, GST, VAT

JEL Classification: H25, K34