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2011 (5) TMI 13 - AAR - Income TaxAdvance ruling - Option between section 44BB(1) and 44BB(3) - Once an assessee opts to come under Section 44BB(1) of the Act, the provision itself deems its profits and gains as 10% of the aggregate of the amounts specified in sub-section (2). Sub-section 2 (a) specifies that that aggregate amount is the amount paid or payable whether in or out of India to the assessee on account of provision of services in India. In the scenario, there is no scope for splitting up the amount payable to the assessee. If the assessee wants to seek such a splitting up it has to go under section 44BB(3) of the Act. Section 44BB does not close its doors to an applicant who desires to know which part of its income accrues or arises in India and how much - The applicant can exercise its rights provided it opts to get the income computed under section 44BB(3) of the Act - The scheme of computation of income under this section does not provide any leeway to apply simultaneously both the sub-sections (1) and (3) of section 44BB to the income arising from the business activities falling under the ambit of sect ion 44BB(1) of the Act. seismic data acquisition and processing contracts - If a part of the income falls under "Royalties or Fees for Technical Services", there is no scope to assess such receipts under these heads, once it is held that the income is from its oil exploration and production activities as envisaged under section 44BB - If the applicant desires to know the answers to the two issues, then it has to first exercise the option to get its income computed under section 44BB(3) Mobilization / demobilization revenues - the entire mobilization/demobilization revenues received by the applicant with respect to seismic data acquisition and/or processing contracts would be taxable in India at effective rate of 4.223% - Accordingly, ruling is given.
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