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China to India · PE

Permanent establishment risk for Chinese companies in India

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

In brief

A Chinese 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–China tax treaty: Services through employees for more than 183 days create a permanent establishment.

What is specific to Chinese companies

Track days spent in India by Chinese engineers on installation work.

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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 Chinese rules change often; confirm the current position before acting. Chinese law points should be confirmed with a Chinese adviser.

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