Section 44BB of Income Tax Act "Special provision for computing profits and gains in connection with the business of exploration, etc., of mineral oils"
44BB. (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.
What are Amounts not deductible? Section 40 of Income Tax Act 1961
What are Profits chargeable to tax? Section 41 of Income Tax Act 1961
Section 43AA Taxation of foreign exchange fluctuation
Section 43CB Computation of income from construction and service contracts
Section 44ADA Special provision for computing profits and gains of profession on presumptive basis