Foreign companies to pay tax on revenue earned under seismic data acquisition and processing contracts – AAR

Advertisement OHM Limited Vs. DIT (AAR No. 935 of 2010) – Foreign firms operating in the country will have to pay tax at the existing rate of 4.223 per cent on revenue earned under seismic data acquisition and processing contracts, says a tribunal.  In a ruling, the Authority of Advanced Rulings (AAR) held that foreign firms would not enjoy any leeway even if their income falls under the label of royalties or is considered as fees for technical services.= “The entire mobilization or demobilization revenues received by the applicant with respect to seismic data acquisition and/o...