Oceaneering International GMBH Vs DCIT (International Taxation) (ITAT Mumbai)
ITAT Mumbai held that GST would not form part of gross receipts for the purposes of computing presumptive income under Section 44BB of the Income Tax Act. Accordingly, appeal of the assessee allowed.
Facts- The assessee, a non-resident company registered in Switzerland, is engaged in the business of providing equipment and service for use in oil and gas drilling operation to various companies engaged in oil and gas exploration activities in India. It filed its return of income for the impugned assessment year 2021-22 offering income to tax on presumptive basis in accordance with Section 44 BB of the Act. The return was selected for scrutiny and AO observed that the assessee has received payment on account of GST which has not been included under the gross receipts which have been offered to tax u/s. 44 BB of the Act. Accordingly, the amount of Rs. 13,10,09,191/- was brought to tax as part of gross receipts for the purposes of presumptive income u/s. 44 BB of the Act. DRP upholds action of AO. Being aggrieved, the present appeal is filed.
Conclusion- The Coordinate Bench in Seadrill International Ltd. has held that the GST which is collected as a separate line item in the invoices as a statutory levy cannot be included as part of gross receipts for the purposes of section 44BB of the Act
