Pops rule 2012

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This query is : Resolved

Ajay Yadav (Querist)

14 March 2014 Dear sir/madam
If a NRI agency provding consultancy service in india by sending its employees to clients site and the stay period in india will be 18 months from and employees will stay at the client office for proving the same. The NRI dont have any office in india. Now my Quarry is whether it shall be considered as fixed establishment for the purpose of place of provision rule 2012 or it shall b covered under reverse charge . Service is consultancy service.

Amol S Joglekar

Amol S Joglekar (Expert)

14 March 2014 Since the service is provided in India and the employees are staying in India, it will be regarded as establishment.
(By the way.....Reverse Charge AND POPS rule are not of Either/or kind.)

Ajay Yadav

Ajay Yadav (Querist)

14 March 2014 First Thank you Amol sir,

i just wanted confirm that whether the stay period of employee shall create a Fixed establishment as per the definition given under place of provision rule 2012. As per per definition there must be permanency of human being and technical resources to create a fixed establishment. Period is missing in the definition . in our case the contract will be carried out over a period of 18 month .

Amol S Joglekar

Amol S Joglekar (Expert)

15 March 2014 since stay is 18 months, it is sufficient to establish permanent establishment

Ajay Yadav

Ajay Yadav (Querist)

18 March 2014 thank u very Much Sir for your kind assistance

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