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“fixed establishment” means a place (other than the registered place of business) which is characterised by a sufficient degree of permanence and suitable structure in terms of human and technical resources to supply services, or to receive and use services for its own needs;
The following three elements are critical to determine whether a place is a ‘fixed establishment’:
(a) Having a sufficient degree of permanence;
(b) Having a structure of human and technical resources; and (c) Other than a registered place of business.
The following aspects need to be noted:
• A fixed establishment refers to a place of business which is not registered;
• The person should undertake supply of services or should receive and use services for own needs in such place;
• Not every temporary or interim location of a project site or transit-warehouse will become a fixed establishment of the taxable person.
• Temporary presence of staff in a place by way of a short visit to a place or so does not make that place a fixed establishment;
• E.g.: A service provider in the business of renting of immovable property services has his registered office at Bangalore and the property for rent along with an office is located in Chennai. In this case, the registered office will be the principal place of business and the property in Chennai along with the office will be regarded as a fixed establishment of the service provider.
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