In Brief
Hyatt International Southwest Asia Ltd., incorporated in Dubai and a UAE tax resident, entered into long-term Strategic Oversight Services Agreements (SOSAs) with Indian hotel owners to provide strategic planning, branding, HR oversight, and financial controls. The Supreme Court held that Hyatt maintained a Permanent Establishment (PE) in India under Article 5(1) of the Indo-UAE DTAA, making income from the SOSAs taxable in India under Article 7. The Court found that Hyatt exercised pervasive operational control over hotel operations—including staffing decisions, policy implementation, and financial oversight—through its executives' regular presence. The Court rejected arguments that advisory services and lack of exclusive space precluded PE status, emphasizing that economic substance, not legal form, determines PE status. The 20-year agreement, continuous engagement, and core operational involvement satisfied the requirements for a fixed place PE. All appeals were dismissed.
The lawyer headnote and full judgment text are available to registered users.