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2012 (8) TMI 200 - AAR - Income TaxMud Engineering Services - income derived in India for the services rendered to Naptogaz - whether covered under the provisions of section 44BB or is liable to be independently taxed as "fees for technical services" in terms of section 9(1)(vii) - Held that:- Explanation (2) to section 9(1)(vii) depicts that the consideration received for rendering technical services will not be fees for technical services if it is consideration for any 'construction, assembly mining or like project undertaken by the recipient' - As in this case doing the work of Mud Engineering cannot be understood as the undertaking of the mining project and is only performing certain services for Naptogaz. At best,consideration received by the applicant for the services it renders is fees for technical services within the meaning of section 9(1)(vii). Section 44BB(1) clearly states that fees for technical services received for rendering services in connection with prospecting for or extraction or production of mineral oils, cannot be brought under this section if section 44DA or section 115A of the Act applied to it and as the applicant is a non-resident receiving consideration for the technical services rendered by it, from an Indian company so clearly section 44DA or section 115A(b) would be attracted - the income-derived by the applicant in India is liable to be independently taxed as 'fees for technical services' in terms of section 9(1)(vii) - in favour of assessee.
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