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2012 (10) TMI 202 - AT - Income TaxFees for Technical Services - Assessee carried out work with ONGC, Reliance Industries Ltd., Hardy Exploration & Production (India) Inc. & Westerngeco International Inc. GSPC & Cairn Energy India Pvt. Ltd. for the acquisition and processing of 3D seismic data along with its personnel and equipments. Question is whether The contention of revenue was justified in imposing Tax @25% on Revenues worth ₹ 671,54,604 earned from Cairn Energy India Pty. Ltd. and Hardy Exploration & Production (India) Inc. as against charging the whole revenue of ₹ 756,17,15,932/- @10%. The Assessee contended that fee for technical services whether rendered in connection with prospecting for or extraction or production of mineral oil or otherwise will be assessable either u/s 44DA or section 115A of the Act depending on fact whether such receipts are effectively connected with Permanent establishment or Fixed place of Profession. As decided in case of [CGG Veritas Services, SA Versus Additional Director of Income-tax, (International Taxation 2012 (4) TMI 280 - ITAT DELHI] as entire project has to be executed by the assessee and all the terms of contract are similar with the only difference that the other party is a non-resident company. The amount received by the assessee will be assessable u/s 115A of the Act. Held that:- The receipts are liable to tax @10% as Fees is received in connection with PE and Place of Profession in India - Appeal is allowed in favour of assessee.
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