Section 44BB - Special provision for computing profits and gains in connection with the business of exploration, etc., of mineral oils

Deemed profits rule for mineral oil services prescribes presumptive taxable profits and limits set offs for specified service providers.

Section 44BB deems, for a non-resident providing services or hiring plant for prospecting or production of mineral oils, a sum equal to ten per cent of specified receipts to be the profits and gains chargeable to tax; specified receipts include amounts paid or payable for services and hires in India and amounts received or deemed received in India for services or hires outside India. The assessee may instead claim lower profits by maintaining prescribed books and obtaining an audit under section 44AB, and declarations under the deeming rule disallow set off of unabsorbed depreciation and brought forward losses for that year.