ISSUE FROM MALAYBHAI

Hi Friends,



I have an issue on PE for an Indian subsidiary company of the parent company in Belgium.

B India (BI) is a subsidiary of B Belgium (BB). They have entered into an agreement effective from 24th December 2004. The broad terms are:



BB sales machinery and equipments to its customers in India.

1. BB to provide management assistance and technical training to the technicians of BI for installation, maintenance and servicing of BB products.

2. BI to provide services of installation, maintenance and after sales services under the instructions of and to the customers BB.

3. BI to promote the products of BB in the domestic market.



BB will pay a fee of 3% to 5% on the amount of sales invoice of BB to its customers.



Whether BI will be considered as a PE of BB?



Can i have your opinion on this?



Thanks & Best Regards,

Malay