Servicos De Petroleo Constellation SA vs. DCIT(International Taxation)

Parties Involved

Facts Summary

The assessee, a non-resident company from Brazil, is engaged in providing onshore and offshore oil well drilling services. It had entered into a contract with Oil and Natural Gas Corporation Limited (ONGC) for charter hire of an Anchor Moored Drilling Rig. The assessee filed its return of income for the year under consideration, declaring total income. The Assistant Commissioner of Income Tax (A.O.) observed that the assessee had excluded the amount received as 'reimbursement of service tax' from the total receipts while computing the deemed profit. The assessee filed an objection before the Dispute Resolution Panel (DRP), which directed that the sum received on account of GST by the assessee from its customers with regard to the shipping business are to be included while computing the total income. The assessee is in appeal before the ITAT, challenging the final assessment order.…

Legal Issues

• 1. Whether the GST amount paid by the assessee is to be included while computing the gross receipts under section 44BB of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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