Service Permanent ESTABLISHMENT PE

While the formal title of a "Freelancer Agreement" is used, the exclusive nature of the relationship and the active role in managing importer correspondence present a significant Agency PE risk. Indian courts and tax authorities frequently look past the contractual label to the actual degree of authority and commercial dependence. It is highly recommended to have a professional audit of the agency agreement and the actual day-to-day operations to ensure they align with the "preparatory or auxiliary" safe harbor limits defined in the India-Germany DTAA.