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3. The brief facts of the case are that the assessee M/s. Deep Drilling 5 Pte. Ltd., is a non-resident company in India and also is a tax resident of Singapore. The assessee is engaged in the business of providing deep drilling rig named "deep driller-5" used in oil exploration. The assessee had entered into a contract with M/s. CAIRN India Ltd. (Vedanta) to carry out drilling work of well drilling at off-shore location designed by CAIRN in PR-OSN-2004/1 PalarPennar Block on the east coast of India. As per the said agreement between the parties, the assessee deployed its equipment "mainly the drilling rig and other incidental equipment" and the personnel to carry out the well drilling operations. Further, as per the said agreement, the nature of equipments to be provided by the assessee, relevant materials required for drilling and also personnel required for the work has been specified, as per which, the drilling rig and other incidental equipments, necessary materials and other equipments and further, personnel required for carrying out the work shall be provided by the assessee. The assessee has mobilized the drilling rig to carry out the contract from Batam, Indonesia and said drilling rig entered into India in the month of February, 2017 and thereafter, it is commenced its operations in February, 2017. In the said agreement, it was further stated that duration of the work as per the contract with CAIRN is for two wells and one additional well to last till 30.04.2017 and hence, the period of operations in India for the FY 2016-17 would be only 45 days.
"C The company requires the Contractor to provide an offshore drilling rig, together with associated equipment and personnel to perform certain work in accordance with the directions issued by the Company", "D The Contractor has agreed to provide such drilling rig, equipment and/or personnel to the Company to perform such work on the terms and condition set out in this Contract"

NOW THEREFORE IT IS HEREBY AGREED as follows:

1. The Contractor agrees to provide the Drilling Unit, the other Contractor's Equipment and the Contractor's Personnel and lo perform the Work in accordance with the terms and conditions of this Contract and, in consideration of its provision of the Drilling Unit, the other Contractor's Equipment and the Contractor's Personnel and the performance of the work, the Company agree to pay the Contractor according to the rates, terms and conditions herein contained.
A detailed analysis on each of the above questions is provided as under:
Qn 1 Whether the income received by the appellant in the nature of hire charges for use of drilling rig and other associated equipment and the services of the personnel constitute a Royalty as held by the Assessing Officer The name of the present contract under consideration is a Block PR-OSN-2004/1 Contract for provision of a Drilling Unit for drilling operations offshore India. There are various heads under which an income of a foreign company can be taxed in India as per various treaties and section 9 of the Income Tax Act. The India Singapore DTAA describes Royalty as to include Article 12 Royalties and Fee for Technical Services

(Vedanta) to carry out certain activities including well drilling at off-shore location designed by CAIRN in PR-OSN-2004/1 Palar-Pennar Block on the east coast of India. As per the agreement between the assessee and M/s.

CAIRN India Ltd., if you go through the scope of work, the assessee shall deploy equipments necessary for drilling work including drilling rig and other incidental equipments and also necessary supplies, materials and tools required for the said work. The assessee shall also provide necessary manpower including Rig Manager, Logistic Manager, warehouse man, Office supporting staff and sufficient personnel to perform the services. From the scope of work as referred to in the agreement between the parties, it is undoubtedly clear that it is not a case of simple hiring of drilling rig with other equipment, but a comprehensive contract for drilling work with all men and materials to be provided by the assessee. Further, said agreement was remain in force till the contract completes and as per the facts available on record, the assessee was present in India only for 53 days (i.e. from 07.02.2017 to 31.03.2017).