2010 (3) TMI 113

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....e income derived by Master and Commander AS ('M&C) ought to be computed in accordance with the computational mechanism under section 44BB of the Act? 2. If the answer to question no.1 is in affirmative, what would be the rate at which tax is to be withheld from payments made by the applicant to M&C? 3. Whether on the stated facts and in the circumstances of the case, even if the consideration for the services provided by M&C is construed to be in the nature of 'Royalty' or 'Fees for technical services' under Article 13 of the Double Taxation Avoidance Agreement between India and Norway ('tax treaty') nevertheless, the income chargeable to tax ought to be computed having regard to the computational mechanism under section 44BB of the A....

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.... and natural gas) and, therefore, they fall under the ambit of Section 44BB of the IT Act and the income has to be computed in accordance with that provision.  4.  The applicant was awarded a three year contract by ONGC for 3D Seismic data acquisition and onboard processing Offshore India during field season 2008-09, 2009-10 and 2010-11.  For the purpose of executing the contract with ONGC, the applicant has entered into a global Time Charter Agreement with Geo Subsea Pte Ltd., a company incorporated in Singapore, for the provision of seismic vessel.  It is stated that the vessel was subsequently transferred to Master & Commander AS, a company incorporated in Norway, and as a result of this an addendum to the original....

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....in the prospecting operation.  In regard to the applicability of Section 44BB, it was observed thus: "In a very recent ruling given by this Authority in the case of Geofizyka Torun Sp.zo.o. (AAR No.813/2009), the scheme and nuances of the said special provision have been analysed in detail.  The question in that case was whether computation had to be done in respect of the income derived by the assessee who carried out seismic survey and data processing services for the oil companies under section 44BB as contended by the applicant or section 44DA as contended by the Revenue. This Authority has taken the view that section 44BB being a specific and special provision providing for computation of income arising from such services ....