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More productive. Prove It. Our Fleet Ultra-deepwater and harsh-environment floaters. Where We Operate In the deepest waters and the harshest environments - where you need us to be, we're there. Region: North America. Strongwell provided cable trays and phenolic gratings, while Ebo Systems Obernai, France provided handrails, ladders with safety cages, and gratings made with polyester and acrylic resins.
According to Bernard Titreville, senior design engineer for Transocean in Montrouge, France, use of FRP topside outfittings walkways, handrails, wind walls, and access ladders eliminated 30 tons from the combined weight of the main structure and the living quarters. A new product, the handrails required recertification by ABS, due to initial problems experienced with the method of attachment to the structure. Reinforcements at the walkway attachments and additional gussets at the bolted fixture points solved the problem. Floor installations revealed that bolting the FRP to the steel structure remains a challenge.
Titreville believes that an installation technique that uses clips would be successful, but he stipulates that the clips would have to incorporated into the design at project conception. Continuous Compression Molding process produces structures 30 percent lighter than aluminum at costs that have both Airbus and Boeing sold. Capable of volume production, thermoplastic composites will gain new market share in the aerospace industry. We have gone through said case law. However, on the basis of said case law, assessee cannot claim benefit of DTAA unless he fulfils the conditions that he is covered under the agreement.
Learned Counsel for the appellants argued that ''''''''liability of taxation'''''''' should not be misunderstood with ''''''''payment of tax''''''''. It is further argued that liability of tax is a legal situation and payment of tax is a fiscal fact. Therefore, it is submitted on behalf of the appellants that merely for the reason that a particular income is exempted in the other Contracting State does not make it a case that it is not chargeable to tax in such other State.
We do agree with the submission to the extent that ''''''''chargeable to tax'''''''' does not necessarily mean that the tax is paid on the income and it could be an amount which is exempted from the tax in that State. But what appellants in the present case are lacking is that they have not furnished any document or statute that the amount they have received through SFII and SFIDI for their work in India is chargeable to tax in their State.
Sedco Forex International Drilling INC
In the case of Azadi Bachao Andolan supra it is held that an assessee, who has shown exemption from tax under Mauritian law, from payment of tax, can claim benefit of Indo-Mauritius DTAA. But in the present case, appellants have not shown any document or statute that the remuneration received by them, exempted or otherwise, was chargeable to tax in their State which was a Contracting party to DTAA. Union of India and Another Vs.
Section 44BB contains special provision for computing profits and gains in connection with business of exploration, etc. Under said section, in the case of an assessee being non-resident engaged in the business of providing services or facilities in connection with or supplying plants and machines on hire use or to be used in the prospecting of or extraction or production of mineral oils, a sum equal to 10 per cent of the aggregate of the amounts specified shall be deemed to be the profits and gains of such business chargeable to tax under the head ''''''''Profits and gains of business or profession''''''''.
Under said section, deemed profits to the tune of 10 per cent are taxed and it overrides the other charging sections in this regard. It is also clear that it applies to non-resident assessee and tax authorities appear to have rightly assessed the appellants'''''''' income under the aforesaid section.
TRANSOCEAN OFFSHORE DRILLING (INDIA) PRIVATE LIMITED
However, Mr. Poms Kaka, learned Counsel appearing on behalf of appellants, drew attention of this Court to Article 3 in aforesaid DTAA with the France and argued that the appellants cannot be subjected to tax as they have no permanent establishment in India. Article 3 of DTAA with France reads as under : "The industrial or commercial profits excluding the profits derived from the operation of ships or aircraft of an enterprise of one of the Contracting States shall not be subjected to tax in the other Contracting State unless the enterprise has a permanent establishment situated in that other Contracting State.
- forex historical tick data.
- Sedco Forex International INC, Cayman Islands.
- Transocean?
If it has such a permanent establishment, the profits attributable thereto shall be subjected to tax only in that other Contracting State. Therefore, we are unable to see force in aforesaid contention for the reason that SFII or SFIDI has no permanent establishment in India and in our considered opinion, the Tribunal has not erred in law in holding that the appellants are not entitled to the benefit under the DTAA. Lastly, it is also contended on behalf of the appellants that the tax exemptions under the DTAA with the various States are executed to encourage investment by the foreign companies in developing countries.
And for that reason treaty shopping should neither be treated unethical nor illegal. We are aware of the fact that ''''''''treaty shopping'''''''' is an act of resident of a third country taking advantage of a fiscal treaty between the two countries. We also agree that certain developing countries do enter into DTAA, in which one of the motive is to encourage foreign investment or to boost the economy. However, unless the conditions as required under DTAA are fulfilled, assessee cannot claim benefit of the same.
For the reasons as discussed above, both the questions are answered in negative, i. Accordingly, the appeals are dismissed. No order as to costs. Advocates List.
For Petitioner : Porus KakaT. For Respondent S. Vani B. Sunita Rao Sushil Kumar Pathak. Bench List. PANT, J. Eq Citation.
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