9911796707
TMI Blog1998 (12) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... ce ruling has been sought on the following questions of law : 1. Whether, on the facts and in the circumstances, the applicant can be said to have a permanent establishment in India ? 2. Whether under paragraph 3(a) of article 7 of the Double Taxation Avoidance Agreement between India and Belgium, the profits attributable to the permanent establishment can be worked out on completed contract method ? 3. Though the said para. 3(a) speaks of deduction of expenses, whether depreciation allowance will be granted on dredgers, boats, equipment, computers and other plant and machinery deployed for the execution of the contract on the basis of cost of acquisition, since the said assets were not put to use in India any time before and no d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and in the circumstances the amount of taxable profit could be determined by AAR at a fixed percentage of the gross receipts based on the applicant s past profitability statements and other relevant factors, either assessable in the year of completion of the contract or year wise ? The following submissions have been made by the applicant in this case: 1. The applicant is a company incorporated in Belgium having its registered office at Tragel 23, 9308 Hofstade-Aalst, Belgium. The applicant is engaged in the business of dredging and marine contracting. The business of the applicant is managed by a board of directors who are non-resident foreign nationals. Control and management of the affairs of the company are situated wholly out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l status about the tax liability of the company in India. 5. The residential status of the applicant, for the purpose of taxation, would be non-resident under section 6(3) as the control and management of its affairs is situated with 4(1) of the Double Taxation Avoidance Agreement between India and Belgium, the applicant will be a resident enterprise of Belgium (sic). Although elaborate arguments were advanced on behalf of the applicant as well as on behalf of the Revenue, the case can be disposed of on the point raised in question No. 8. The question raised by the applicant is whether, on the facts and in the circumstances of its case, the provision of section 44BBB is applicable in its case. The contract obtained by the applicant w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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