{"url":"https://lrlabs.ai/t/securing_orders_exchange_of_notes","engine":"deterministic","llm_in_path":false,"id":"securing_orders_exchange_of_notes","question":"When does habitually securing orders create a PE under the India–US treaty?","answer":"Securing orders alone never suffices. The Exchange of Notes of 12 September 1989 (published agreed interpretation of Article 5(4)(c)) fixes four conditions, EACH necessary (\"only if\"): (1) the person frequently accepts orders on behalf of the enterprise; (2) substantially all of its sales-related activities in India are for the enterprise; (3) it habitually represents that its acceptance of an order binds the enterprise; and (4) the enterprise's own conduct gives purchasers a reasonable basis to believe the person has authority to bind it. Failing any one defeats the limb.","pinpoint":"Article 5(4)(c) with the Exchange of Notes, 12 Sep 1989","confidence":"agreed_interpretation","as_at":"14 Aug 2026","treaty":"India–USA","note":"Published in India's official DTAA compilation; the US Treasury Technical Explanation corroborates the same four tests; no reported Indian decision has yet applied the conditions.\n","quote":"only if: 1. such person frequently accepts orders","quote_string_verified":true,"quote_source":"attachment:IN-US.ART5"}