Both companies are still viewed as government-related issuers and Moody's continues to assess the expectation of support from the sovereign as strong for GAIL and high for ONGC. However, a weaker sovereign has the potential to create a ratings drag, and therefore it is appropriate to limit the extent to which these issuers are rated higher than the sovereign, in line with Moody's Rating Implementation Guidance "How Sovereign Credit Quality May Affect Other Ratings" published on 13 Februaryand available on www.
Appellant Research methodology of ongc Mr C. Respondent Through Mr N. Respondent Through Mr C. The aforesaid contract entailed designing, engineering, procurement, fabrication of fully loaded offshore platform and its installation, testing and commissioning at an offshore facility of ONGC. According to the Revenue, the income from the said contract is liable to be taxed in India as the Assessee is stated to have a Permanent Establishment PE in India.
The Assessee claims that it does not have a PE in India and further, in any event, the income from fabrication and supply of platform is not taxable as the same pertains to the Assessee's activities outside India.
Whilst the ITAT had rejected the Assessee's contention that it does not have a PE in India, it accepted the Assessee's contention that the contractual receipts from ONGC were separable and the amount received for fabrication and supply of platform outside India was not taxable under the Act.
Whether the Income Tax Appellate Tribunal was justified and correct in holding that the installation permanent establishment under Article 5 2 h of the Double Taxation Avoidance Agreement between India and UAE is not dependent on the date of actual start of execution of the contract but had come into existence on the date of award of contract?
Did the ITAT erred in law in holding that no income accrued to the assessee on account of offshore supplies it made; 3. In case question no. Briefly stated, the aforesaid questions arise in the backdrop of the following facts: The Assessee is, inter alia, engaged in fabrication of petroleum platforms, pipelines and other equipment and in addition, the Assessee also undertakes contracts for installation of petroleum platforms, submarine pipelines and pipeline coating at various sites.
In the course of its business, the appellant tendered for and entered into contracts with ONGC for the installation of petroleum platforms and submarine pipelines. A tabular statement indicating the activities carried out in India and overseas as asserted by the Assessee, is reproduced below: Outside India Abu Installation and Dhabi i.
The Assessee also adopted the said basis for computing its assessable income and filed its returns for AY onwards accordingly.
The returns filed by the Assessee for AYand were processed under Section 1 of the Act. Accordingly, he held that the entire contractual receipts including the activities performed outside India were taxable in India. The DRP reasoned that: This, according to the DRP, indicated that the pre-bid survey was conducted through the Project Office which was directly connected with the contract in question; iv during the period of negotiation of the contract, employees of the Assessee had attended the meeting with ONGC on 16th December, and this included the employees of the Project Office.
The DRP observed that the Assessee had not disputed that the concerned persons were employees of its project; v the minutes of the kick-off meeting clearly mentioned that the review of engineering documents would be done in Mumbai. It held that the contract in question was a turnkey contract in the nature of a works contract and could not be considered as a contract for services as envisaged under Section 44BB of the Act.
The DRP, thereafter, noted the profit margins of four other companies which were taken as comparable to the Assessee and found that the average profit margin of those companies was Proceedings before the ITAT The ITAT also concurred with the DRP's conclusion that it was not possible for the Assessee, a non-resident company, to execute a contract which lasted for approximately two years without having any place of business in India from where the project could be managed.
The ITAT held that ASL's presence in the business meetings also indicated that ASL was engaged in the hard core business development activity of the Assessee in India and its role was not limited merely for collecting information as claimed by the Assessee. It concurred with the AO's decision that the Assessee had a PE in India even prior to the notification of award of the contract.
Accordingly, it held that the profits attributable to design, procurement of material and fabrication could not be taxed in India. The ITAT rejected the Assessee's contention that the tax payable should be computed as per the formula adopted in the preceding years i. Aggarwal, learned Senior Counsel appearing for the Assessee submitted that the Assessee had established the Project Office only to comply with the contractual requirements and the applicable exchange control regulations.
The Project Office merely acted as a communication channel between the Assessee and ONGC and apart from that, it had no other role to play. He pointed out that the addresses of the project offices in the past were different and the said project offices had been established only for the contracts entered into earlier.
He submitted that, therefore, the existence of the Assessee's project offices in the past could not be linked to the Project Office established for the purpose of the contracts in question. He argued that the AO erred in holding that the Assessee had carried its business in India through a PE by alluding to the project offices established by the Assessee in respect of prior contracts.
Mr Aggarwal relied upon the decisions in CIT v. Hyundai Heavy Industries Co. He argued that the earliest date which could be considered for calculating the period would be the date when the barges with the fabricated platforms reached the work site, that is, on 19th November, He argued that the activities of the independent sub-contractor could not be included for calculating the period of nine months under Article 5 2 h of the DTAA.
He further submitted that the time taken for pre-bid activities, notification of award, signing of the contract and meetings with ONGC were irrelevant for calculating the existence of an Installation PE since such work did not result in acquiring control over a work site.
He submitted that ASL was an independent entity and carried out substantial business activities other than those related to the Assessee. Mr Aggarwal also submitted that although the ITAT had accepted the Assessee's contention that only income from activities carried out in India was attributable to the PE, it had failed to adjudicate the quantum of the profits assessable to tax under the Act.
He submitted that the alleged comparable companies were functionally different and the ITAT had failed to consider the Assessee's submission in this regard.
Submissions on behalf of the Revenue He submitted that the Assessee had filed a return admitting that it had a PE in India and in the circumstances, a contrary claim could not be made by the Assessee at the time of the Assessment.Apr 12, · The principal methodology used in rating GAIL was the Regulated Electric and Gas Utilities Industry Methodology, published in August Please see the Credit Policy page on timberdesignmag.com for a copy of this methodology.
The aim of Zak Awards for Façade & Fenestration is to recognize developers, architects and contractors across India who have made exemplary contribution to the . Research Methodology In this report we have analyzed the merger between Imperial Energy Corporation by Jarpeno limited (Bidco) a wholly owned subsidiary of ONGC Videsh limited (OVL).
We have analyzed this merger on the basis of motives, cost and benefits and the mechanics of merger. Fundamental analysis of ONGC-Equity Research Report based on future prospects, current price, ratio analysis of profitability, ROCE, ROE, and debt-equity.
RESEARCH METHODOLOGY The approach used for the study was Survey Method. For this Literature and Diagnostic Survey were carried out: LITERATURE SURVEY Secondary sources were referred to get the basic culture and working pattern of ONGC.5/5(12).
Introduction: ONGC is oil and Natural gas corporation limited is an Indian multinational oil and gas company headquartered in Dehradun, India It is a Public Sector Undertaking (PSU) of the Government of India, under the administrative control of the Ministry of Petroleum and Natural Gas.