Presumptive income rule for mineral oil services deems gross receipts as business profits and limits depreciation set offs. Non resident suppliers of services, plant or machinery for prospecting, extraction or production of mineral oils are subject to a presumptive rule deeming a specified portion of gross receipts as business profits; the rule applies to receipts related to Indian and foreign operations as specified and does not create entitlement to depreciation allowances. Taxpayers may show lower income only if they maintain books and obtain an audit, and cases will face scrutiny; technical services/knowhow fall outside this rule, while rent and hire charges are covered. The amendment disallows set off of unabsorbed depreciation and brought forward depreciation against income declared under the rule.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Presumptive income rule for mineral oil services deems gross receipts as business profits and limits depreciation set offs.
Non resident suppliers of services, plant or machinery for prospecting, extraction or production of mineral oils are subject to a presumptive rule deeming a specified portion of gross receipts as business profits; the rule applies to receipts related to Indian and foreign operations as specified and does not create entitlement to depreciation allowances. Taxpayers may show lower income only if they maintain books and obtain an audit, and cases will face scrutiny; technical services/knowhow fall outside this rule, while rent and hire charges are covered. The amendment disallows set off of unabsorbed depreciation and brought forward depreciation against income declared under the rule.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
AI OCR ✕
of 
TaxTMI 
TaxTMI 
