The non-resident assessee company offered income on a ...

Non-resident company's income from project office taxed u/s 44BB; service tax/GST receipts excluded from gross receipts.

December 17, 2024

Case Laws Income Tax AT

The non-resident assessee company offered income on a presumptive basis u/s 44BB at 10% of gross receipts from a project office in India. The Assessing Officer accepted the returned income. Section 44BB, with its non-obstante clause, excludes the application of Sections 28 to 41 and Sections 43 and 43A, including Section 40(a)(i), for computing income from the business of exploration of mineral oils. The transactions were between two non-residents outside India. Following the Supreme Court's decision in CIT vs. Vantage International Management Co, service tax/GST receipts should not be included in the aggregate amounts u/s 44BB(2) since they are not received for services provided in prospecting, extraction or production of mineral oils. Consequently, the disallowance u/s 40(a)(i) was deleted, and the matter was decided in favor of the assessee.

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The non-resident assessee company offered income on a ...

Non-resident company's income from project office taxed u/s 44BB; service tax/GST receipts excluded from gross receipts.

December 17, 2024

Case Laws Income Tax AT

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