Case nº AAR No. 1700 of 2015 of AAR Cases, August 16, 2016 (case In Re: Tiong Woon Contracting Pte Ltd. Vs)

JudgeFor Appellant: K. Meenatchi Sundaram, Adv. and For Respondents: I.P.S. Bindra and S.S. Negi, Advs.
PresidentV.S. Sirpurkar, J. (Chairman), A.K. Tewary and R.S. Shukla, Members
Resolution DateAugust 16, 2016
Issuing OrganizationAAR Cases


V.S. Sirpurkar, J. (Chairman)

  1. The applicant Tiong Woon Project & Contracting (Pte) Ltd. is a tax resident of Singapore. It has raised two questions which are as under:

    (i) Whether looking to the nature of activities carried on by the applicant, which is a Singapore based company and a non-resident as per the provisions of s. 6(3) of the IT Act, 1961, the applicant can be held to have earned any income taxable in India from its activities renting out of its cranes for use in India, as per the provisions of IT Act, 1961?

    (ii) If the answer is affirmative, how the total income of the Applicant should be computed as per the provisions of the IT Act, 1961?

    The applicant contends that it is engaged in the business of (i) renting/leasing of heavy lifting cranes for use and (ii) providing erection and installation of heavy equipment like furnaces, boilers, coke drums, fractionators, chimneys, turbines, generators etc. in many countries in Asia.

  2. The applicant further submits that it had rented out a crane 'Demag CC 8800-1 (SSL)' having a capacity to lift 1600 metric tons for a period of 7 months commencing from 17th Feb., 2015, which is expected to end on 15th Sept., 2015 to M/s. GR Engineering (P) Ltd. This renting is claimed to have been done by the applicant as per the terms contained in the Service Work Order No. P11/744-3400001617 Dt. 4th March, 2014 and amendment service order Dt. 3rd June, 2014. The applicant has given a breakup of the total consideration of Rs. 19.45 crores. It is further pleaded that this crane was for the use at the refinery of Bharat Petroleum Corporation Ltd. (BPCL for short) at its Integrated Refinery Expansion Project (IREP for short) site at its Kochi Refinery, which is engaged in refining of mineral oils. The applicant has also given a print out from the website of BPCL in support of his contention. It is then reminded that 3 applications of the applicant pending for disposal in this Authority are (i) erection and installation of certain equipment of the customer at Guru Gobind Singh Sagar Refinery at Bathinda, Punjab during the period 25th Feb., 2010 to 15th Oct.. 2010 for M/s. L&T Ltd. by using two Cranes; (ii) the second application relates to the erection and installation of certain equipment of the customer at Mangalore Refinery, Karnataka during the period 6th Jan., 2011 to 31st Jan., 2012 for M/s. Punj Lloyd Ltd. by using a crane imported in November, 2007; and (iii) the third relates to...

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