Making Available Technical Expertise and Being Effectively Connected to a Permanent Establishment

This article discusses the recent decision of the Income Tax Appellate Tribunal (Delhi) in which the Tribunal found that a substantial part of the payment made by the Board of Control for Cricket in India to a United Kingdom resident company to establish and run the Indian Premier League was taxable in terms of article 13 of the India-United Kingdom tax treaty. The author analyses the key aspects of the Tribunal’s decision, covering the scope of India’s domestic law source rule, the “make available” condition in article 13(4)(c) of the treaty, the scope of the “effectively connected” to a permanent establishment requirement – and the Tribunal’s interpretation – of article 13(6), and the interplay between the “effectively connected” condition and the need for profits to be “attributable to” a permanent establishment under article 7 of the treaty.