TaxTMI 
TaxTMI 
2011 (7) TMI 98
X X X X Extracts X X X X
X X X X Extracts X X X X
....y incorporated and located in Korea and is a tax resident of Korea. It is engaged in the business of manufacturing electric wire and cable for power distribution. The applicant was the successful bidder in the bids invited by the Delhi Transco Limited (DTL) for the supply, laying, jointing, testing and commissioning of the following projects: A. 220 KV, D/C XLPE cable of 1 x 1200 sq.mm between Maharani Bagh GIS Sub-Station and Electric lane GIS Sub-Station at New Delhi, B. 200 KV D/C U/G Cable between 400/200 K V Maharani Bagh GIS substation and 220 K V Trauma Centre (AIIMS) GIS Substation at New Delhi, India. C. 220 KV XLPE Cable of 1000 Sq.mm between 220 KV GIS Ridge Valley Substation and 220 KV GIS TRAUMA Centre (AIIMS) Substati....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... contract') for offshore supply of equipments and materials including mandatory spares on CIF basis for 200 KV D/C U/G cable between 400/220 K V Maharani Bagh GIS substation and 220 K V Electric Lane GIS Substation at New Delhi, India are liable to tax in India under the provisions of the Income-tax Act, 1961 ('Act') and the Agreement for Avoidance of Double Taxation between India and Korea ('India-Korea tax treaty')? In AAR No. 859/2009, the following question is formulated by the applicant for seeking advance ruling from this Authority: On the facts and circumstances of the case, whether the amounts receivable by LS Cable Limited ('Applicant' or LSCL') from Delhi Transco Limited ('DTL') Contract No. DTL/CA/PROJECT-II/09-10/MB to TC/....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... or LSCL') from Delhi Transco Limited ('DTL') Contract No. DTL/CA/PROJECT-II/09-10/LILO-1 dated 6 July, 2009 ('offshore supply contract') for offshore supply of equipments and materials including mandatory spares on CIF basis in respect of Bernauli - Mehrauli 220 KV double circuit overhead transmission line for feeding proposed 220 KV GIS Substation at IGI Airport, New Delhi are liable to tax in India under the provisions of the Income-tax Act, 1961 ('Act') and the Agreement for Avoidance of Double Taxation between India and Korea ('India-Korea tax treaty')? 3. The learned Additional DIT present on behalf of the revenue has responded by raising the question relating to admission of application under section 245R(2) vide order dated 4.6.2....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pply and onshore contracts were signed on the same date. The offshore supplies were made by the applicant and the onshore supplies of the services were also made by the applicant. The insurance requirement of the offshore supplies contract require that the applicant will take out and maintain insurance of cargo, installation, worker compensation, etc. 5. The revenue submits that in view of the above, the applicant's case is not a case of a sale simpliciter. The contract is for full package involving onshore services. It could not have made a difference had the contract been one instead of three divisible contracts. Same function would have been performed by entering into a single contract for the composite work which includes not only de....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... on receipt of shipment advice and insurance clause, would go to establish that the transaction of sale and the title took place outside Indian Territory. The ownership and property in goods passed outside India. The transit risk borne by the applicant till the goods reach the site in India is not necessarily inconsistent with the sale of goods taking place outside India. The parties may decide between them as to when the title of the goods should pass. As the consideration for the sale portion is separately specified, it can well be separated from the whole as is held in the case of Ishikwajima. In the case of Ansaldo Energia SPA relied on by the revenue, the contract for offshore supply awarded to the assessee was held to be a composite c....