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2016 (9) TMI 164

Head Note:
Taxability in India - amounts received/receivable by the applicant from Larsen & Toubro towards offshore supply of goods and materials - DTAA between India and Singapore - whether the contract is divisible into offshore supply of goods and materials and services rendered, whether obligations under the work as per the contract are distinct, i.e. whether off shore supply is an independent scope of work in the contract? - PE in India - Held that:- The present contract is clearly a composite one for providing services. Appendix V describes the nature of work in detail and a simple reading of work and responsibilities of the applicant shows that contract is one.

As in the present case payment is not separately linked with services and supply but is to be made on the basis of stages of completion of the contract irrespective of goods and materials brought in the premise.

The contract is a composite one and offshore supplies are not an independent scope of work.

All parts of the transaction relating to sale of goods to L & T were not completed outside India.

No separate price of goods supplied by way of offshore supply or sale of goods to L & T outside India is specified in the contract.

PE played a role in design, selection and procurement of materials to be used in the fagade related work.

The fact pattern of this case is not at all similar to that of Ishikawajima Harima [2007 (1) TMI 91 - SUPREME COURT ] and the law as enunciated herein does not apply to the facts of the present case.

The contract in this case is a composite one and the entire amount received by the applicant from L&T is taxable in India.


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