2011 (9) TMI 70

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..... b which commenced on 15.10.2009 and completed on 22.01.2010. Financial Year 2010-11 (i) Naftogaz India Project Bhatinda, which commenced on 2.04.2010 and expected to be completed on 3.6.2010. (ii) HPCL-Mittal Energy Ltd. Project, Bhatinda, Punjab which commenced on 15.5.2010 and expected to be completed on 6.08.2010. 2. Applicant submits that these four projects are independent of each other and secured through independent work orders. These are installation projects and executed using its two cranes which were imported from Singapore in November, 2007. To carry out the installation work, four to five key personnel from Singapore are deployed along with the local manpower. Prior to the present installation projects, the cranes were used .....

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..... provisions of the Income Tax Act, 1961 should be computed? and b) what is the rate of deduction of income tax to be applied by the Customer(s) as per Chapter XVIIB of the Income Tax Act, 1961? 4. The applicant submits that the scope of these installation projects comprise of erection and installation of certain heavy equipments at the site of the customers. The equipments to be installed are fabricated and provided by the customers at the installation sites. The work orders for each of these projects refer to erection of equipments and would constitute installation and assembly projects. 5. The Revenue has challenged the applicant's contention that these projects are installation and assembly projects. The learned representative of the .....

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..... ivities in connection with installation and assembly project nor it would amount to furnishing of services under the deeming provision of Article 5.6 of the DTAA, a residuary clause to Article 5.4 and 5.5 of the DTAA. The nature and purpose of these activities relates to installation and assembly projects and are covered under Article 5.3 of the DTAA. The controversy whether Article 5.3 or 5.6 will apply is settled as we are of the view that the activities of the applicant relates to installation and assembly projects. The fact that the income from the execution of these projects is in the nature of business profits and taxable as per Article 7.1 of the DTAA is not denied by the Revenue. In fact the Revenue did not object when the applicant .....

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