Delhi High Court Issues Notice in Tax Dispute Involving Clifford Chance

The Delhi High Court has issued notice in the Income Tax Department’s appeal against an Income Tax Appellate Tribunal (ITAT) order that reduced the tax liability of Clifford Chance, a global law firm.

The dispute concerns whether India can tax foreign law firms on the basis of a “virtual permanent establishment” under the India–Singapore DTAA.

The ITAT had ruled that Clifford Chance lacked a service PE since its lawyers were in India for less than 90 days (AY 2020–21) and not at all in AY 2021–22.

The case is next listed on September 12.

[Commissioner of Income Tax (International Taxation) v Clifford Chance Pte Ltd.]