New Delhi, July 24 -- In a crucial ruling with broad implications on how multinational companies are taxed in India, the Supreme Court on Thursday held that UAE-based Hyatt International Southwest Asia, which provides hotel advisory services in India, has a taxable Permanent Establishment (PE) in the country.

A bench comprising Justices J.B. Pardiwala and R. Mahadevan upheld Delhi High Court's earlier decision, which had ruled that Hyatt's Indian PE must be treated as a distinct taxable entity.

The judgment is significant as it clarifies that multinational companies can be taxed in India if they exercise substantial operational control here, even without long-term employee presence. The court held that a PE should be treated as a separa...