AAR held that offshore supply of equipment since property in goods were transferred by assessee outside India and entire sale was executed outside India, consideration received by assessee therefrom could not be taxed in India.As regards basic engineering design services were intrinsically in respect of setting up of Butane-1 plant and same were rendered through project office of assessee in India, consideration received in respect of said basic engineering design services was liable to tax in India as business income of PE of assessee.
Technip Frances SAS, In re (2021) 280 Taxman 117 (AAR)
S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Offshore supply of equipments-Transferred outside India and entire sale was executed outside India-Revenue received therefrom was not to be taxed in India-Basic engineering design services were intrinsically in respect of setting up of Butane-1 plant and same were rendered through project office of assessee in India, consideration received in respect of said basic engineering design services was liable to tax in India as business income of PE of assessee-DTAA-India-France. [Art. 7(1), 12]