2016-TII-INSTANT-ALL-334
02 June 2016   

CASE LAW

2016-TII-33-HC-DEL-INTL

TECHNIP SINGAPORE PTE LTD Vs DIT: DELHI HIGH COURT (Dated: June 2, 2016)

Income Tax - Writ - Sections 9(1)(vi) & (vii) & 197 - India-Singapore DTAA - Articles 5, 7 & 12.

Keywords - Royalty - Residual offshore construction work - contract of service - FTS - hire of equipment - de facto control - Installation charges - PE.

Whether when the Revenue fails to agitate the issue of PE before the Authority for Advance Ruling, it is free to raise this point before the High Court - NO: HC

Whether when the Revenue is not able to show that the non-resident had a PE in India, even then its income can be brought to tax under Article 7 of the DTAA - NO: HC

Whether when the control of the equipment was not transferred to the IOCL during the execution of the contract, even then mobilisation charges are to be treated as royalty - NO: HC

Whether when the Revenue did not characterise the income as royalty while issuing the certificate u/s 197, it can change the same later - NO: HC

Whether when the mobilisation and demobilisation charges are not construed as royalty, even then installation services are to be treated as subsidiary to the main work - NO: HC

Assessee's Writ allowed

  

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