Should GST/Service Tax Be Included in Gross Receipts for Offshore Drilling Income Calculations u/s 44BB?

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....This case deals with the issue of whether GST/service tax amount should be included while computing the gross receipts u/s 44BB for a non-resident company engaged in offshore oil well drilling services. The key points are: The non-resident assessee entered into a contract with ONGC for charter hire of a drilling rig. The issue was whether GST/service tax collected from ONGC should be included in computing presumptive income u/s 44BB. CBDT circulars clarified that service tax should be excluded while computing income for TDS deduction on rent paid to residents. This principle was applied to non-residents as well, as Section 44BB intends to tax only the amount paid/payable at 10% for such business activities. The word 'amount' cannot include .........