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2012 (5) TMI 111 - AAR - Income TaxContract for ‘services for supply, installation and commissioning of 36 manometer gauges’ with ONGC - Held that:- On a proper reading of the Invitation to Tender and the contract entered into it is a contract for installation of equipment which the tenderer itself is to supply - it is an indivisible contract - the object in floating the tender is in furtherance of oil extraction - all payments received by the applicant under the composite contract with ONGC is income chargeable to tax in India - The contract cannot be treated as an independent one for offshore supply of 36 manometer gauges and another one for erection of it – against assessee. Part of the payment towards price of the manometer gauges cannot be considered divorced from the payments received for the performance of entire obligations under the contract. Payment received by the applicant for installation, erection and commissioning of the manometer gauges – Held that:- The contract of services for supply, installation and commissioning of manometer gauges is chargeable to tax under section 44BB of the Act, if it is found that the contract is for providing services or facilities in connection with prospecting for, or extraction of mineral oil – the services are rendered in connection with the prospecting and / extraction of oil by ONGC, hence section 44BB of the Act is attracted - against assessee.
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