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Economic Times
a day ago
- Business
- Economic Times
Equity over debt: NRIs see Indian markets as long-term wealth builders, says Harsh Gahlaut
In this edition of ETMarkets NRI Talk, we speak with Harsh Gahlaut, Co-founder & CEO of FinEdge, to decode the evolving investment preferences of non-resident Indians. With a growing number of NRIs channeling their money into Indian mutual funds, the trend clearly reflects more than just a quest for returns—it's about long-term conviction in India's economic story. From emotional ties and strategic asset allocation to the increasing ease of digital investing, Harsh shares insights into why equity continues to dominate NRI portfolios, how taxation and regulation shape their decisions, and why India remains a core destination for wealth creation, despite the operational challenges. Edited Excerpts - ADVERTISEMENT Q) NRIs are actively investing in Indian mutual funds. What are some of the key drivers behind this trend?A) Several key emotional and strategic factors are at play here. First, there's a deep sense of familiarity and belonging, a kind of anchoring bias, that drives NRIs to invest in India. Despite living abroad, India remains home, and this emotional connection plays a significant role in financial decision-making and investment beliefs. Second, many NRIs are acutely aware of the Indian growth story. They hear about India's rising global influence and see the potential firsthand, from macroeconomic stability and digital innovation to favourable demographics and long-term GDP prospects. That's something many of them take pretty seriously, and it shows in the way they invest. Third, for a large number of NRIs, there's a long-term view, whether it's the intention to return, support family members, or simply have a solid financial foothold in India. Mutual funds become a natural choice because they offer professional management, diversification, and alignment with long-term goals, such as retirement, education, or legacy planning. Q) How do NRIs navigate the taxation maze, especially under the Double Taxation Avoidance Agreement (DTAA)? Are there common challenges they face? A) Interestingly, tax efficiency is rarely the primary driver behind NRI investments in India. Most NRIs are driven more by long-term value, familiarity, and strategic diversification than tax efficiency alone. That said, the Double Taxation Avoidance Agreement (DTAA) certainly adds a layer of convenience and clarity. Despite the friction, India continues to hold a firm place in NRI investment portfolios, driven more by belief than by convenience. ADVERTISEMENT Depending on the treaty terms, NRIs may be eligible for reduced tax rates or claim a credit for taxes paid in India against their overseas tax liabilities. For instance, interest income or capital gains earned in India might be subject to lower TDS under DTAA provisions, easing the overall tax said, taxation is just one piece of a much larger puzzle. NRIs face a range of other practical challenges, including complex documentation requirements, understanding currency risk, and managing time zone differences when dealing with professionals based in India. In places like the US and Canada, regulatory filters make things even trickier — some mutual funds are simply off the table. ADVERTISEMENT NRIs also rely more heavily on service support, especially when it comes to tasks like KYC, nominee updates, or redemption documentation. For many, a lack of access to a trusted investment expert who can guide them virtually and collaboratively becomes a significant these hurdles, most NRIs continue to look at India as a core part of their long-term investment strategy. The connection to home, coupled with India's long-term economic potential, outweighs these operational complexities for many investors. ADVERTISEMENT Q) You mentioned that NRI inflows come mainly from the US, UAE, UK, and Singapore. How do investor preferences differ across these geographies?A) Interestingly, while these regions differ in culture and regulation, the investment mindset of NRIs across geographies is more similar than different, especially when it comes to long-term wealth of where they are based, NRIs today want intelligent visibility into their portfolios and the confidence that someone has their goals mapped out with clarity. ADVERTISEMENT Across the board, we see a firm conviction in India's growth story. Whether it's an NRI in New York, Dubai, London, or Singapore, there is a shared belief in the long-term potential of the Indian economy, and a preference for staying invested with NRIs are not chasing quick returns. Instead, they're looking for structured, goal-based investing, often with the support of an expert who can offer personalisation and convergence in mindset likely stems from a few common factors. Many NRIs have global market exposure and, as a result, more rational expectations. Their savings potential, especially in rupee terms, tends to be the same time, busy professional lives and time constraints mean they value the presence of a trusted expert who can help them stay on track, manage their portfolios, and navigate life changes without constantly reacting to market noise. That said, we have noticed subtle preferences in how NRIs engage with investment platforms. In digitally mature markets like the US and Singapore, there is a stronger inclination toward platforms that offer complete transparency, real-time portfolio tracking, and guided engagement, not just transactional ease. That's probably why blended models, where people and tech work together, feel more natural to ability to collaborate, plan virtually, and review progress through a single seamless interface is something NRIs increasingly expect as part of their investment experience. Q) What are the most promising sectors in India currently attracting NRI investments, and why are they gaining momentum? A) While there's often curiosity around sectors, we find that most NRIs aren't sector-chasers in the traditional sense. Their approach tends to be long-term and goal-based rather than tactical or said, we do see growing interest in areas that reflect India's structural growth story. Their focus is less on thematic rotations and more on strategies that deliver results quietly over sectors such as financial services, infrastructure, technology, and manufacturing, particularly those aligned with the 'Make in India' and capital expenditure (capex) revival narrative, are gaining investor also seeing some interest in areas like renewable energy and the digital economy, largely thanks to India's momentum in those than making concentrated sectoral bets, most NRIs prefer diversified exposure through mutual funds or broader asset allocation strategies. They're usually more measured than domestic investors in responding to short-term market have experienced the downside of being sold the wrong products in the past, especially insurance bundled as an investment. They are now more focused on transparency, cost efficiency, and long-term alignment with their while promising sectors do exist, NRIs are generally not investing with a thematic focus. Their preference is for long-term, resilient strategies that benefit from India's broader economic momentum, rather than timing individual sectors. Q) How are government initiatives and economic reforms creating new opportunities for NRIs to invest in India? A) The biggest shift we've seen is how digitalisation has made investing in India far more seamless and location-agnostic. NRIs today can transact, track, and review their investments from anywhere in the world, something that wasn't as easy even a few years like Aadhaar-based KYC, digital signatures, and improved online reporting tools have reduced friction and brought said, there are still operational gaps, especially in areas such as NRI onboarding, KYC updates, bank detail changes, or residency status modifications, which often still require offline intervention. But the intent to resolve these issues is clear, and we're seeing steady progress toward end-to-end digital important development is the push around GIFT City, which offers NRIs and foreign investors access to certain investment options under a globally competitive tax and regulatory still early days, but as more product innovation and regulatory clarity evolve around GIFT City, it could become a meaningful channel for NRIs seeking efficient India sum it up, India's direction of reform is making it a lot easier and more future-ready for NRIs to invest back home, and the message to global investors, including NRIs, is clear: India is open, evolving, and becoming easier to engage with. Q) What kind of allocation are NRIs making towards fixed-income instruments like bonds? Are tax-free bonds or government securities gaining traction? A) For most NRIs, the India opportunity is still viewed through the lens of long-term growth, and that naturally draws them more toward equities. Their core motivation is participation in India's economic trajectory, rather than locking into fixed-income instruments for do see fixed-income allocations being made for the purpose of asset diversification or short-term stability. However, tax-free bonds, government securities, or even newer retail products, such as government bonds or T-Bills, have yet to gain widespread traction among tend to be more relevant in specific cases, for instance, after a property sale, when certain capital gains exemptions are available through infrastructure of those instances, NRIs who seek lower-risk exposure often still lean toward traditional options, such as fixed deposits. The familiarity and simplicity appeal to many, even if not the most tax-efficient. Additionally, for many NRIs, the risk of rupee depreciation is a factor, making long-duration, rupee-denominated debt instruments less attractive unless there's a clear tax or regulatory incentive to justify the exposure. Broadly speaking, equity remains the preferred vehicle for long-term wealth creation, while fixed income continues to play a stabilising role, more complementary than core. (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
a day ago
- Business
- Time of India
Equity over debt: NRIs see Indian markets as long-term wealth builders, says Harsh Gahlaut
In this edition of ETMarkets NRI Talk, we speak with Harsh Gahlaut, Co-founder & CEO of FinEdge, to decode the evolving investment preferences of non-resident Indians. With a growing number of NRIs channeling their money into Indian mutual funds, the trend clearly reflects more than just a quest for returns—it's about long-term conviction in India's economic story. From emotional ties and strategic asset allocation to the increasing ease of digital investing, Harsh shares insights into why equity continues to dominate NRI portfolios, how taxation and regulation shape their decisions, and why India remains a core destination for wealth creation, despite the operational challenges. Edited Excerpts - Q) NRIs are actively investing in Indian mutual funds. What are some of the key drivers behind this trend? Explore courses from Top Institutes in Please select course: Select a Course Category A) Several key emotional and strategic factors are at play here. First, there's a deep sense of familiarity and belonging, a kind of anchoring bias, that drives NRIs to invest in India. Despite living abroad, India remains home, and this emotional connection plays a significant role in financial decision-making and investment beliefs. Second, many NRIs are acutely aware of the Indian growth story. They hear about India's rising global influence and see the potential firsthand, from macroeconomic stability and digital innovation to favourable demographics and long-term GDP prospects. That's something many of them take pretty seriously, and it shows in the way they invest. Third, for a large number of NRIs, there's a long-term view, whether it's the intention to return, support family members, or simply have a solid financial foothold in India. Mutual funds become a natural choice because they offer professional management, diversification, and alignment with long-term goals, such as retirement, education, or legacy planning. Live Events Q) How do NRIs navigate the taxation maze, especially under the Double Taxation Avoidance Agreement (DTAA)? Are there common challenges they face? A) Interestingly, tax efficiency is rarely the primary driver behind NRI investments in India. Most NRIs are driven more by long-term value, familiarity, and strategic diversification than tax efficiency alone. That said, the Double Taxation Avoidance Agreement (DTAA) certainly adds a layer of convenience and clarity. Despite the friction, India continues to hold a firm place in NRI investment portfolios, driven more by belief than by convenience. Depending on the treaty terms, NRIs may be eligible for reduced tax rates or claim a credit for taxes paid in India against their overseas tax liabilities. For instance, interest income or capital gains earned in India might be subject to lower TDS under DTAA provisions, easing the overall tax impact. That said, taxation is just one piece of a much larger puzzle. NRIs face a range of other practical challenges, including complex documentation requirements, understanding currency risk, and managing time zone differences when dealing with professionals based in India. In places like the US and Canada, regulatory filters make things even trickier — some mutual funds are simply off the table. NRIs also rely more heavily on service support, especially when it comes to tasks like KYC, nominee updates, or redemption documentation. For many, a lack of access to a trusted investment expert who can guide them virtually and collaboratively becomes a significant barrier. Despite these hurdles, most NRIs continue to look at India as a core part of their long-term investment strategy. The connection to home, coupled with India's long-term economic potential, outweighs these operational complexities for many investors. Q) You mentioned that NRI inflows come mainly from the US, UAE, UK, and Singapore. How do investor preferences differ across these geographies? A) Interestingly, while these regions differ in culture and regulation, the investment mindset of NRIs across geographies is more similar than different, especially when it comes to long-term wealth creation. Regardless of where they are based, NRIs today want intelligent visibility into their portfolios and the confidence that someone has their goals mapped out with clarity. Across the board, we see a firm conviction in India's growth story. Whether it's an NRI in New York, Dubai, London, or Singapore, there is a shared belief in the long-term potential of the Indian economy, and a preference for staying invested with discipline. Most NRIs are not chasing quick returns. Instead, they're looking for structured, goal-based investing, often with the support of an expert who can offer personalisation and process. This convergence in mindset likely stems from a few common factors. Many NRIs have global market exposure and, as a result, more rational expectations. Their savings potential, especially in rupee terms, tends to be higher. At the same time, busy professional lives and time constraints mean they value the presence of a trusted expert who can help them stay on track, manage their portfolios, and navigate life changes without constantly reacting to market noise. That said, we have noticed subtle preferences in how NRIs engage with investment platforms. In digitally mature markets like the US and Singapore, there is a stronger inclination toward platforms that offer complete transparency, real-time portfolio tracking, and guided engagement, not just transactional ease. That's probably why blended models, where people and tech work together, feel more natural to them. The ability to collaborate, plan virtually, and review progress through a single seamless interface is something NRIs increasingly expect as part of their investment experience. Q) What are the most promising sectors in India currently attracting NRI investments, and why are they gaining momentum? A) While there's often curiosity around sectors, we find that most NRIs aren't sector-chasers in the traditional sense. Their approach tends to be long-term and goal-based rather than tactical or theme-driven. That said, we do see growing interest in areas that reflect India's structural growth story. Their focus is less on thematic rotations and more on strategies that deliver results quietly over time. Broadly, sectors such as financial services, infrastructure, technology, and manufacturing, particularly those aligned with the 'Make in India' and capital expenditure (capex) revival narrative, are gaining investor confidence. We're also seeing some interest in areas like renewable energy and the digital economy, largely thanks to India's momentum in those spaces. Rather than making concentrated sectoral bets, most NRIs prefer diversified exposure through mutual funds or broader asset allocation strategies. They're usually more measured than domestic investors in responding to short-term market trends. Many have experienced the downside of being sold the wrong products in the past, especially insurance bundled as an investment. They are now more focused on transparency, cost efficiency, and long-term alignment with their goals. So, while promising sectors do exist, NRIs are generally not investing with a thematic focus. Their preference is for long-term, resilient strategies that benefit from India's broader economic momentum, rather than timing individual sectors. Q) How are government initiatives and economic reforms creating new opportunities for NRIs to invest in India? A) The biggest shift we've seen is how digitalisation has made investing in India far more seamless and location-agnostic. NRIs today can transact, track, and review their investments from anywhere in the world, something that wasn't as easy even a few years ago. Initiatives like Aadhaar-based KYC, digital signatures, and improved online reporting tools have reduced friction and brought transparency. That said, there are still operational gaps, especially in areas such as NRI onboarding, KYC updates, bank detail changes, or residency status modifications, which often still require offline intervention. But the intent to resolve these issues is clear, and we're seeing steady progress toward end-to-end digital enablement. Another important development is the push around GIFT City, which offers NRIs and foreign investors access to certain investment options under a globally competitive tax and regulatory framework. It's still early days, but as more product innovation and regulatory clarity evolve around GIFT City, it could become a meaningful channel for NRIs seeking efficient India exposure. To sum it up, India's direction of reform is making it a lot easier and more future-ready for NRIs to invest back home, and the message to global investors, including NRIs, is clear: India is open, evolving, and becoming easier to engage with. Q) What kind of allocation are NRIs making towards fixed-income instruments like bonds? Are tax-free bonds or government securities gaining traction? A) For most NRIs, the India opportunity is still viewed through the lens of long-term growth, and that naturally draws them more toward equities. Their core motivation is participation in India's economic trajectory, rather than locking into fixed-income instruments for yield. We do see fixed-income allocations being made for the purpose of asset diversification or short-term stability. However, tax-free bonds, government securities, or even newer retail products, such as government bonds or T-Bills, have yet to gain widespread traction among NRIs. They tend to be more relevant in specific cases, for instance, after a property sale, when certain capital gains exemptions are available through infrastructure bonds. Outside of those instances, NRIs who seek lower-risk exposure often still lean toward traditional options, such as fixed deposits. The familiarity and simplicity appeal to many, even if not the most tax-efficient. Additionally, for many NRIs, the risk of rupee depreciation is a factor, making long-duration, rupee-denominated debt instruments less attractive unless there's a clear tax or regulatory incentive to justify the exposure. Broadly speaking, equity remains the preferred vehicle for long-term wealth creation, while fixed income continues to play a stabilising role, more complementary than core.
Hindustan Times
6 days ago
- Business
- Hindustan Times
Operational control enough to tax foreign firms in India, says SC
The Supreme Court on Thursday held that a multinational company may be taxed in India so long as it exercises significant operational control over such premises, even if it has no employees staying here for a period longer than the threshold typically used to assess whether the company is a so-called Permanent Establishment. Operational control enough to tax foreign firms in India, says SC The ruling , which has significant implications for MNCs operating in India, came as a setback to Dubai-based Hyatt International Southwest Asia Ltd, which had challenged its tax liability in India for advisory and management services rendered to Hyatt hotels across the country between 2009 and 2018. A bench of justices JB Pardiwala and R Mahadevan affirmed a 2023 Delhi High Court judgment that recognised Hyatt's presence in India as a Permanent Establishment (PE) under Article 5(1) of the India-UAE Double Taxation Avoidance Agreement (DTAA). The court concluded that Hyatt's active control over the day-to-day hotel operations in India through long-standing agreements established a fixed place PE, making it liable to pay tax in India. Typically, only branch offices, factories, mines etc are considered PEs, although there is also a stipulation related to the time employees spend in India. At the centre of this case was a Services and Operating Services Agreement (SOSA) signed by Hyatt with hotel owners in India, under which the Dubai-based entity provided hotel advisory and consultancy services. Hyatt contended that it operated solely from Dubai, was not obliged to station staff in India, and only permitted occasional visits by its personnel to Indian hotels. It further argued that the SOSA contained no clause allowing it to conduct business from within the hotels, nor did it maintain any office or branch in India. But the top court rejected these submissions, holding that the 'disposal test' for identifying a PE did not require exclusive possession or formal rights over premises, but a fact-specific inquiry into the foreign enterprise's ability to conduct core business functions from the premises. 'The appellant's contention that the absence of an exclusive or designated physical space within the hotel precludes the existence of a PE, is misconceived, said the court, relying on its earlier precedent in Formula One World Championship Ltd ()2017. 'Temporary or shared use of space is sufficient, provided business is carried on through that space,' it added. In this case, the bench found that Hyatt exercised 'pervasive and enforceable control' over the hotel's strategic, operational, and financial aspects. This included the authority to appoint and supervise key personnel, implement HR and procurement policies, control pricing and branding, operate bank accounts, and assign staff to the hotel without the owner's approval. 'These rights go well beyond mere consultancy and indicate that the appellant was an active participant in the core operational activities of the hotel,' said the court, noting that Hyatt's control extended to everyday affairs and not just high-level decisions. Amit Baid, Head of Tax at BTG Advaya law firm, said that the ruling could set a precedent for PE determinations in cases involving frequent employee travel to India. 'The judgment provides a clear conceptual framework for determining PE thresholds -- frequent, regular visits by employees, rather than the duration of individual stays, is the key factor. Once continuity of business presence is established, the return or rotation of individuals becomes irrelevant; and operational control, oversight, and income linked to core functions establish a commercial nexus necessary for a PE,' Baid added. The judgment meanwhile stressed that the 20-year duration of the agreements, combined with continuous and structured involvement of Hyatt's executives in India, satisfied the three-pronged test of stability, productivity, and dependence that governs the recognition of a PE. Further, the court ruled that even though no single Hyatt employee exceeded the 9-month threshold under Article 5(2)(i) of the DTAA, the aggregate and continuous presence of various employees, verified through travel logs and operational duties, fulfilled the requirement of a PE. The court clarified that the legal form of presence is secondary to the economic substance of business functions being carried out in India. 'The appellant's ability to enforce compliance, oversee operations, and derive profit-linked fees from the hotel's earnings demonstrates a clear and continuous commercial nexus and control with the hotel's core functions,' the bench said, calling the hotel premises the 'situs of the appellant's primary business operations.' Importantly, the Supreme Court clarified that under the India–UAE Direct Taxation Avoidance Agreement, the lack of a specific article allowing taxation of Fees for Technical Services (FTS) would not override the existence of a PE under Article 5(1), particularly where core business functions are carried out through a fixed place.
Deccan Herald
7 days ago
- Business
- Deccan Herald
Foreign companies with permanent establishment taxable in India: Supreme Court
A bench of Justices J B Pardiwala and R Mahadevan dismissed the appeals by Hyatt International Southwest Asia Ltd, while affirming the findings of the Delhi HC that Hyatt had a fixed place PE in India within the meaning of Article 5(1) of the DTAA (Double Tax Avoidance Agreement).
Time of India
7 days ago
- Business
- Time of India
SC says Hyatt's India operations are taxable under PE norms
In a ruling that has significant implications for multinational companies operating in India, the Supreme Court Thursday held that UAE-headquartered Hyatt International Southwest Asia , which provides hotel consultancy and advisory services in India as part of its business operations, has a fixed place Permanent Establishment (PE) in India for tax purposes. Upholding a Delhi High Court order that ruled against the hotel company, a bench comprising Justices J.B. Pardiwala and R. Mahadevan dismissed various the appeals by Hyatt International Southwest Asia Ltd, while affirming the findings of the HC that Hyatt had a fixed place PE in India within the meaning of Article 5(1) of the DTAA, and that, the income received under the strategic oversight services agreements (SOSA) is attributable to such PE and is, therefore, taxable in India. Explore courses from Top Institutes in Please select course: Select a Course Category Public Policy Leadership PGDM Finance Design Thinking Cybersecurity CXO Technology Digital Marketing Data Science Artificial Intelligence Healthcare MBA Project Management Operations Management Data Science Degree Management Others others healthcare Product Management MCA Skills you'll gain: Duration: 12 Months IIM Calcutta Executive Programme in Public Policy and Management Starts on undefined Get Details Skills you'll gain: Economics for Public Policy Making Quantitative Techniques Public & Project Finance Law, Health & Urban Development Policy Duration: 12 Months IIM Kozhikode Professional Certificate Programme in Public Policy Management Starts on Mar 3, 2024 Get Details The top court said that was undisputed that Hyatt's executives and employees paid frequent and regular visits to India to oversee operations and implement SOSA. 'The finding of the assessing officer, based on travel logs and job functions, establish continuous and coordinated engagement, even though no single individual exceeded the 9-month stay threshold,' according to SC Under Article 5(2)(i) of the agreement between the government of India and the United Arab Emirates for avoidance of double taxation (DTAA) Under Article 5(2)(i) of the DTAA, the relevant consideration is the continuity of business presence in aggregate – not the length of stay of each individual employee. Once it is found that there is continuity in the business operations, the intermittent presence or return of a particular employee becomes immaterial and insignificant in determining the existence of a PE, Justice Mahadevan, writing for the bench stated, adding the HC was correct in concluding that Hyatt's role was not confined to high-level decision making, but extended to substantial operational control and implementation. The Dubai-based company's ability to enforce compliance, oversee operations, and derive profit-linked fee from the hotel's earnings, demonstrate a clear and continuous commercial nexus, and control with the hotel's core functions, the judgment said, adding that this nexus satisfied the condition necessary for the constitution of a fixed place of PE under Article 5(1) of the India – UAE DTAA. The top court further said that 'the extent of control, strategic decision-making, and influence exercised by the appellant clearly establish that business was carried on through the hotel premises, satisfying the conditions under Article 5(1)…the hotel itself was the situs of the appellant's primary business operations, carried out under its direct supervision and aligned with its commercial interests.' Welcoming the ruling, Amit Baid of BTG Advaya said that "the judgment provides a clear conceptual framework for determining PE thresholds—frequent, regular visits by employees, rather than the duration of individual stays, is the key factor; once continuity of business presence is established, the return or rotation of individuals becomes irrelevant; and operational control, oversight, and income linked to core functions establish a commercial nexus necessary for a PE. The ruling could set a precedent for PE determinations in cases involving frequent employee travel to India." The judgement establishes that substantive operational involvement, such as orchestrating policies, directly overseeing operations, and controlling implementation, will be closely scrutinised when determining the existence of a fixed place PE in India, said Varun Gakhar, Research Associate at Janssen-Sanghavi & Associates. 'In essence, oversight that crosses into operational control may trigger domestic tax exposure under Indian tax treaties. This judgement will have to be analysed closely by multinationals, as determining whether a PE exists is a very fact- and circumstance-specific question,' he added. In 2008, Hyatt had entered into two strategic oversight services agreements with Asian Hotels Ltd. One was in respect of hotel Hyatt Regency, Delhi owned by Asian Hotels, and the other pertained to a hotel in Mumbai. Under the terms of the agreement, Hyatt agreed to provide strategic planning services and "know-how" to ensure that Hyatt Regency was developed and operated as an efficient and a high quality international full-service hotel. Asian Hotels was thereafter reorganised and its name was subsequently changed to Asian Hotels (North) Ltd., which continued to own Hyatt Regency. For the Assessment Year 2009-10, Hyatt filed its return of income declaring 'Nil' income and claiming a refund of around Rs 88 lakh. The Assessing Officer had passed assessment orders for 2009-18, holding that Hyatt's activities constituted a business connection under Section 9(1)(i) of the Income Tax Act; a PE under Article 5 of the DTAA; royalties and fees for technical services under both the Income Tax Act and DTAA. However, Hyatt asserted that its income was not taxable under the Act as there was no specific Article under the DTAA for taxing Fees for Technical Services. It further stated that it did not have any fixed place of business, office, or branch in India, and that the presence of its employees in India during the relevant previous year did not exceed the nine-month threshold under Article 5(2) of the DTAA. Therefore, the appellant claimed that it did not have a PE in India and that its business income was not taxable under Article 7 of the DTAA. The Income Tax Appellate Tribunal (ITAT) in December 2019 and then the HC rejected Hyatt's contention that it did not have a PE in India.
