India: Delhi Tribunal finds no permanent establishment for a Thai affiliate

HQ sends employees to India. What is the tax exposure for my Asian affiliates?

In early August 2026, the Delhi Income Tax Appellate Tribunal ruled that a Thai affiliate did not have a Permanent Establishment (PE) in India.

The Indian tax authority had claimed a PE existed based on the presence of expatriates sent by the Group’s parent entity.

The Tribunal rejected this, finding that the expatriates worked solely for the Indian affiliate and that mere group affiliation did not create a taxable presence.