INDO-UAE DTAA: Mere physical presence of non-resident’s vessel in territorial waters of India pursuant to hiring of vessel on Bareboat Charter terms by applicant does not, without anything more, constitute a permanent establishment

DECIDED BY: AUTHORITY FOR ADVANCE RULINGS (INCOME TAX), NEW DELHI, IN THE CASE OF: Seabird Exploration FZ, LLC, In re, APPEAL NO: AAR No. 829 of 2009, DECIDED ON JULY 23, 2010 R U L I N G [By Hon’ble Chairman] 1. The following facts are stated by the applicant in this application for Advance Ruling under section 245Q of the Income Tax Act 1961, hereafter referred to as the `Act’. 1.1. Seabird Exploration FZLLC (`the Applicant’) is a company incorporated under the laws of United Arab Emirates and is a tax resident of UAE. Seabird is engaged in the business of rendering geophys...