CASE LAWS

2016-TII-61-ITAT-MUM-INTL

RAYTHEON EBASCO OVERSEAS LTD Vs DCIT: MUMBAI ITAT (Dated: March 11, 2016)

Income Tax - Sections 9(1)(vii) & 143(3), Indo-US DTAA - Articles 7, 12(2) & (4)(b).

Keywords - Fee for included services - PE - Managerial services & Tax Treaty .

Whether receipts would be taxable under the provisions of section 9 of the Act, if assessee provides general business of supplying equipment and rendering services as desired by its clients and overall responsibility and management of the project is carried out from outside India - NO: ITAT

Whether to be classified as FTS the services should enable the service receiver to carry out services by obtaining the technical knowledge/ experience/ skill possessed by the service provider - YES: ITAT

Assessee's appeal allowed

 

2016-TII-60-ITAT-DEL-INTL

SIEM OFFSHORE CREWING AS Vs ADIT: DELHI ITAT (Dated: March 11, 2016)

Income tax - Sections 9(1)(vii) & 44BB.

Keywords - crew provision services - continuing contract - fees for technical services & gross receipts.

Whether it is proper on part of the assessee to offer to tax its revenues only on a pro-rata basis based upon the number of days the vessel was stationed within 200 nautical miles from the Indian shore line, where the gross payments are intricately linked to the services rendered by the assessee due to execution of contract in India - NO: ITAT

Whether where the contract for the provision of crew was a continuing contract, it cannot be said that revenues were not earned for the period the vessel was out of the territorial waters of India - YES: ITAT

Whether the entire contract amount and all receipts received against the execution of the contract, is to be considered for the purpose of calculating the gross receipts - YES: ITAT

Whether where the payment of royalty/FTS to non-resident has no nexus with the PE and is paid for the nature of activities contemplated u/s 44BB, the same would continue to be taxable u/s 44BB - YES: ITAT

Whether where a non-resident is engaged in the business of providing services or facilities in connection with the prospecting for extraction or production of mineral oil, then 10% of the aggregate of the amounts received/accrued will be deemed to be the profits and gains of such business chargeable to tax in terms of provisions of section 44BB - YES: ITAT

Assessee's appeal partly allowed