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

JudgeFor Appellant: K. Meenatchi Sundaram, Advocate
PresidentV.S. Sirpurkar, J. (Chairman), A.K. Tewary, Member (R) and R.S. Shukla, Member (L)
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 Section 6(3) of the Income Tax 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 Income Tax Act, 1961?

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

  2. 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.

  3. 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 17.02.2015, which is expected to end on 15.09.2015 to M/s. GR Engineering Private Limited. 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 dated 04.03.2014 and Amendment Service Order dated 03.06.2014. The applicant has given a break up 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 Limited (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 are 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 25.2.2010 to 15.10.2010 for M/s. L&T Limited 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 6.1.2011 to 31.01.2012 for M/s. Punj Lloyd Limited by using a crane imported in November, 2007; and (iii) the third...

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