44BB. Special provision for computing profits and gains in
connection with the business of exploration, etc., of mineral
oils.- (1) Notwithstanding anything to the contrary
contained in sections 28 to 41 and sections 43 and 43A, in
the case of an assessee , being a non-resident, engaged in
the business of providing services or facilities in connection
with, or supplying plant and machinery on hire used, or to
be used, in the prospecting for, or extraction or production
of, mineral oils, a sum equal to ten per cent of the aggregate
of the amounts specified in sub-section (2) 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” :
Provided that this sub-section shall not apply in a case
where the provisions of section 42 or section 44D or section
44DA or section 115A or section 293A apply for the purposes
of computing profits or gains or any other income referred
to in those sections.
(2) The amounts referred to in sub-section (1) shall be the
following, namely :—
(a) the amount paid or payable (whether in or out of India)
to the assessee or to any person on his behalf on account
of the provision of services and facilities in connection
with, or supply of plant and machinery on hire used, or to
be used, in the prospecting for, or extraction or production
of, mineral oils in India; and
(b) the amount received or deemed to be received in India
by or on behalf of the assessee on account of the provision
of services and facilities in connection with, or supply of
plant and machinery on hire used, or to be used, in the prospecting
for, or extraction or production of, mineral oils outside
India.
(3) Notwithstanding anything contained in sub-section (1),
an assessee may claim lower profits and gains than the profits
and gains specified in that sub-section, if he keeps and maintains
such books of account and other documents as required under
sub-section (2) of section 44AA and gets his accounts audited
and furnishes a report of such audit as required under section
44AB, and thereupon the Assessing Officer shall proceed to
make an assessment of the total income or loss of the assessee
under sub-section (3) of section 143 and determine the sum
payable by, or refundable to, the assessee.
Explanation.—For the purposes of this section,—
(i) “plant” includes ships, aircraft, vehicles,
drilling units, scientific apparatus and equipment, used for
the purposes of the said business;
(ii) “mineral oil” includes petroleum and natural
gas.
|
