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Australia to India · PE

Permanent establishment risk for Australian companies in India

CA Utsav Dogra, Chartered Accountant, ICAI M. No. 542375 · Updated

In brief

A Australian company that has a fixed place, a dependent agent or a long project in India can become taxable in India on the profits attributable to it. Under the India–Australia tax treaty: Services for more than 183 days in a 12-month period create a permanent establishment.

What is specific to Australian companies

The 183-day service threshold is longer than in many treaties, but long project assignments still need tracking.

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Questions

Does having a subsidiary create a PE for the parent?

Not by itself. Risk arises from what parent staff or the subsidiary's people do on the parent's behalf.

General information as at 5 November 2026, not advice for a particular case. Indian and Australian rules change often; confirm the current position before acting. Australian law points should be confirmed with a Australian adviser.

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