AAR held that ;Consideration received under contract is not fees for technical fees or royalty .Consideration received was held to be taxable as business income. Duration of operation of less than 120 days is not material .The income arising from the permanent establishment shall be subject to tax in India as business income of the applicant. That the income derived by the applicant from its permanent establishment would be computed in accordance with the provisions of S. 44BB of the Act.(AAR No. 1295 of 2012 dt.28-03-2018)
Seabird Exploration Fz Llc, In Re (2018) 403 ITR 82/302 CTR 19 / 165 DTR 33 (AAR)
S. 44BB : Mineral oils – Computation -Consideration received under contract is not fees for technical fees or royalty -Consideration received was held to be taxable as business income – DTAA -India United Arab Emirates- Duration of operation of less than 120 days is not material . [ S. 9(1) (vi), 9(1)(vii) Art. 5(1),12 ]