BOURBON OFFSHORE ASIA PTE. LTD. Vs. DIRECTOR OF INCOME TAX (INTERNATIONAL TAXATION)

JUDGEMENT

(1.) THE applicant, Bourbon Offshore Asia Pte Ltd (BOA), is a company formed and registered under the laws of Singapore and is a tax resident of Singapore. The applicant states that it offers a comprehensive range of highly productive and new generation innovative offshore service vessels to global oil and gas industries. The vessels assist and support offshore drilling and marine operations. The applicant has entered into a time charter vessels hiring agreement on 26 April, 2006 for provisions of its offshore service vessels to Transocean Offshore International Ventures Ltd. (TOIVL) in India. TOIVL is providing various offshore drilling and support services to Oil and Natural Gas Corporation Ltd. (ONGC). For execution of the contract, TOIVL has entered into a uniform time charter vessel agreement with the applicant. Being a time charter agreement, the entire operation, navigation and management of the vessel provided on hire is under the exclusive command and control of the applicant. The vessel is operated and services are rendered as requested by TOIVL but are subject to exclusive rights of the applicant.

(2.) THE applicant submits that the offshore drilling activities are an integral part of exploration and prospecting activities for mineral oil. The entire process of offshore drilling is done from offshore service vessel equipped with various equipments. Therefore such offshore services vessels are the basic requirement for carrying out activity of offshore drilling operations.

(3.) THE applicant then submits Section 44BB does not make any distinction between the main contractor and sub contractor as regards its applicability in view of the finding given by Ld. ITAT Mumbai in the case of Micoperi S.P.A. Milano, 82 ITD 369.