Assessee, a non-resident corporate entity based in Singapore, entered into charter hire agreements with PDMCC and LT for vessels to be used in Seismic support duties and transport of coated pipes in India respectively. Tribunal held that activities of seismic duties and transport of coated pipes would be covered under Section 44BB and it could not be treated as royalty under Explanation 2(iva) to Section 9(1)(vi). Followed: Valentine Maritime (GULF) LLC (2017) 163 ITD 37 (Mum) (Trib) Dy. CIT v..Western Geco International Ltd. TS-943-ITAT-2022, Larsen & Toubro Ltd. v. Girish Dave DIT (IT) 442 ITR 217 (Bom)(HC).(AY. 2012-13)
Pacific Crest Pte. Ltd. v Dy. CIT (IT) [2023] 201 ITD 11 (Delhi)(Trib)
S. 44BB : Mineral oils-Computation-Vessels to be used in Seismic support duties and transport of coated pipes in India-Receipts are covered under section 44BB-Excluded from the definition. of royalty-DTAA-India-Singapore. [S. 9(1)(vi), Explantion 2(via), 115JA, Art. 12]