State with brief reason, whether the following relate to tax planning, tax avoidance or tax evasion: Setting up of a liaison office in India by a foreign company, instead of a full fledged establishment to run its busine

Setting up of a liaison office in India by a foreign company, instead of a full fledged establishment to run its business activities in India is to reap the benefit of the DTAA instead of coming under the provisions of section 9 of the Income tax Act, and thus is an act of Tax Planning .