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TMI Blog2023 (7) TMI 566X X X X Extracts X X X X X X X X Extracts X X X X ..... when the rig actually begins to perform under the contract, i.e. 3rd December 2010, then (a) there was no need to bring rig into the country in April 2010, (b) there was no need to hold meetings with GSPC in April 2010, (c) the fittings could have been made outside the country and the rig could have been brought into India later, and (d) it will not stop an assessee from saying that in the middle of the contract of drilling the rig broke down, she was off hire and, therefore, those days should not be added in counting 183 days. Theoretically, it is possible that on 30th March the rig may have a sudden break down and on 2nd April the rig may start working again to escape the requirement of Thus even though the actual contract was entered into with GSPC only on 18th June 2010, and accepting what Appellant states that the drilling work actually commenced on 03rd December 2010, still the fact that as on 27th April 2010 the rig was undergoing necessary upgrades / repairs to meet the GSPC requirements, in our view the rig was already in the contracting state for providing the services or facilities in connection with the exploitation, exploration or extraction of mineral oil as earl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pore DTAA which requires provision of service or facility for a period of more than 183 days in the fiscal year. Mr. Agarwal submitted that if Appellant provided services in excess of 183 days then certainly, like it had done in the previous years, Appellant would have offered its income for taxation during the Assessment Year 2011-112 as well. 5. The point in short which is required to be considered was the time of 183 days will begin when the actual services under the contract begins or from the moment the rig enters Indian territory for the purpose in connection with exploration, exploitation or extraction of mineral oil. In other words, when should an enterprise be considered to have rendered services or facilities. 6. It is Appellant s case that though rig had entered the territorial waters some time in April 2010, it was undergoing necessary upgrades / repairs to meet the requirements of GSPC. As per the contract with GSPC and after this upgrades and repairs were completed actual drilling began only on 3rd December 2010 and therefore, the time would start from 3rd December 2010. This would mean only 119 days during Assessment Year 2011-12. 7. Ms. Nagraj, per contra, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ident of it. ii. It is engaged in the business of providing offshore drilling services for the purpose of prospecting for, exploration, exploitation and extraction of minerals oils and natural gas. iii. For this purpose it deploys its equipments (mainly drilling rig) and the personnel at offshore locations. iv. The assessee entered into an agreement dt. 18.6.2010 with GSPC for provision of offshore drilling services and the drilling rig was brought into India in April, 2010. v. The actual services under the contract with GSPC were commenced from 03.12.2010 and continued till the end of the financial year. vi. The drilling services were continued for a period of 119 days during the FY 2010-11 vii. As per Indo-Singapore DTAA the business profits of the Singapore Enterprise can be taxed in India only if it has a PE in India. viii. An Enterprise of Singapore is deemed to have a PE in India and to carry on business through that PE only if the Singapore Enterprise provides services or facilities in India for a period of more than 183 days in any fiscal year in connection with the Exploration, Exploitation or Extraction of mineral oils in India. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... OP in addition for short term. f) GSPC asked about the BOP hoisting system since it is rated just above the weight of the BOP stack. Aban responded that they would add extra compression to the system. g) GSPC inquired if Aban is equipped to carry out batch drilling of three wells. Since the CTU is not needed, a texas Deck would have to be fabricated / modified to support tree conductors. GSPC will furnish the information that GSPC has on the previous design by Premium Drilling. h) GSPC will furnish the 4 slot template drawings along with the drawings of the existing 6 slot template to Aban. 11. If we have to accept Mr. Agarwal s stand that the date on which the count of 183 days will begin is only when the rig actually begins to perform under the contract, i.e. 3rd December 2010, then (a) there was no need to bring rig into the country in April 2010, (b) there was no need to hold meetings with GSPC in April 2010, (c) the fittings could have been made outside the country and the rig could have been brought into India later, and (d) it will not stop an assessee from saying that in the middle of the contract of drilling the rig broke down, she was off hire an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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