Law:

Section:

Section 44BBB of the Income-tax Act, 1961 - Civil construction business - Foreign companies engaged in - Applicant, a company incorporated in Belgium and engaged in business of dredging and marine contracting, has been awarded a contract in India by Chennai Port Trust for work of dredging their new port - Applicant has opened a temporary project office in India and will deploy from abroad technical people and all plant and machinery required - Whether on facts as stated by applicant section 44BBB is applicable - Held, yes FACTS The applicant is a company incorporated in Belgium and engaged in the business of dredging and marine contracting. Control and management of the affairs of the company is situated wholly outside India. The company has no branches in India. The applicant has been awarded a contract by the Chennai Port Trust for the work of dredging at their new port. The applicant has opened a temporary project office in India to execute the said contract after obtaining permission from the Reserve Bank of India. The applicant shall deploy from abroad its dredgers, survey equipments, boats, computers, technical people and other relevant plant and machinery required to execute the said contract. This application is made with an objective of ascertaining the confirmed legal status about the tax liability of the company in India. The residential status of the applicant, for the purpose of taxation, would be non-resident. The main question raised by the applicant is whether on the facts and circumstances of its case, the provision of section 44BBB is applicable in its case. HELD The contract obtained by the applicant will go on for a number of years. This contract has been given to the applicant in connection with the turnkey power project which has been approved by the Central Government. It would be more advantageous for the department as well as the applicant to proceed with the assessment of the profits made by the applicant by having recourse to section 44BBB. On the facts as stated by the applicant section 44BBB is applicable. S.N. Inamdar and P.B. Deshpande for the Applicant. Radha Balakrishnan for the Respondent. RULING Sen, J. - The advance ruling…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492