I-T authorities win permanent establishment battle against MasterCard

Case won similar to those pursued by European countries in cases with Google, Facebook

Indian tax authorities have won a key legal battle against a multinational company in the electronic commerce space, and the case is similar to those pursued by European countries in their tax cases with Google and Facebook.

In a case against MasterCard’s Singapore-based arm, the income-tax department has been able to convince the Authority for Advance Rulings (AAR) that a company is taxable in India like any other domestic company if it secures business through a permanent establishment, whether it employs people or software to do the job. 
 

The case in its essentials was straightforward. But it was keenly contested