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TMI Blog2010 (3) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... ('M&C) ought to be computed in accordance with the computational mechanism under section 44BB of the Act? 2. If the answer to question no.1 is in affirmative, what would be the rate at which tax is to be withheld from payments made by the applicant to M&C? 3. Whether on the stated facts and in the circumstances of the case, even if the consideration for the services provided by M&C is construed to be in the nature of 'Royalty' or 'Fees for technical services' under Article 13 of the Double Taxation Avoidance Agreement between India and Norway ('tax treaty') nevertheless, the income chargeable to tax ought to be computed having regard to the computational mechanism under section 44BB of the Act? 4. Whether on the stated facts and in law, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Section 44BB of the IT Act and the income has to be computed in accordance with that provision. 4. The applicant was awarded a three year contract by ONGC for 3D Seismic data acquisition and onboard processing Offshore India during field season 2008-09, 2009-10 and 2010-11. For the purpose of executing the contract with ONGC, the applicant has entered into a global Time Charter Agreement with Geo Subsea Pte Ltd., a company incorporated in Singapore, for the provision of seismic vessel. It is stated that the vessel was subsequently transferred to Master & Commander AS, a company incorporated in Norway, and as a result of this an addendum to the original agreement was entered into between Wavefield and M&C. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of Section 44BB, it was observed thus: "In a very recent ruling given by this Authority in the case of Geofizyka Torun Sp.zo.o. (AAR No.813/2009), the scheme and nuances of the said special provision have been analysed in detail. The question in that case was whether computation had to be done in respect of the income derived by the assessee who carried out seismic survey and data processing services for the oil companies under section 44BB as contended by the applicant or section 44DA as contended by the Revenue. This Authority has taken the view that section 44BB being a specific and special provision providing for computation of income arising from such services rendered in connection with the prospecting for or exploration of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o answer is called for as the contentions were confined to the provisions of the Income-tax Act, 1961 but not DTAA.
(4) As the amounts falling under Section 44BB of I.T. Act have been excluded from the purview of the royalty definition, this question has to be answered in the negative. Once Section 44BB is attracted, it is common ground that the computation has to be made in accordance with that provision and no other special provision, viz., Section 44DA or Section 115-A would come into play in view of the fact that the payment is being made by a non-resident to another non-resident.
(5) It is unnecessary to answer this question.
Accordingly, the ruling is given and pronounced on this the 5th day of March, 1010. X X X X Extracts X X X X X X X X Extracts X X X X
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