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Case law › Notifications › 1998 › Notification No. 12E
Notification 5 January 1998

Notification No. 12E

Any income arising to the Rolls Royce Military Aero Engines Limited declared under section 10

What this is

Notification No. 12E was published on 5 January 1998. Its subject is Any income arising to the Rolls Royce Military Aero Engines Limited declared under section 10.

This grants an exemption or a relief under a provision that allows one. Read the conditions attached: an exemption notification is construed strictly, and a condition missed is the exemption lost.

What it does

Under clause (6C) of section 10 of the Income-tax Act, 1961, the Central Government declares that any income arising to Rolls Royce Military Aero Engines Limited, a foreign company having its office at Moor Lane, Derby, DE24 8BJ, England, by way of fees for technical services received in pursuance of the agreement dated 27 March 1996 entered into with the President of India for providing services in or outside India in projects connected with the security of India, shall not be taken into consideration in computing the total income of that company. A proviso excepts income on the supply of spare parts under the same agreement, which is not exempt and is to be taken into account in computing the company's total income.

Who it reaches

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.
Under the 1961 ActNow
s.10s.11, s.19

The instrument, as the Board published it

The words below are the department’s own, reproduced from its published text. Where the department’s copy carried a publisher’s notes after the instrument, those are not reproduced.

In exercise of the powers conferred by clause (6C) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby declares that any income arising to the Rolls Royce Military Aero Engines Limited, a foreign company having its office at Moor Lane, Derby, DE24 8BJ, England, by way of fees for technical services received in pursuance of the agreement dated 27th March, 1996, entered into with the President of India for providing services in or outside India in projects connected with security of India shall not be taken into consideration for computing the total income of the said company under the Income-tax Act, 1961:

Provided that income on supply of spare parts in pursuance of the said agreement shall not be exempt under the said clause (6C) of section 10 and income on supply of said spare parts shall be taken into consideration for computing the total income of the said company.

[Notification No. 10494/F. No. 200/112/96-ITA-I

What to watch

Where you meet it

In the company's return of income and in the withholding on payments made under the agreement, where the fees and the spare parts element must be distinguished.

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

← Notification No. 8E  ·  Notification No. 11E →

What a notification is. A notification is made under a power the Act itself gives, and within that power it is law — unlike a circular, which only binds the department. Its reach is the reach of the enabling provision and no wider, and the date it carries decides from when it works.

Source: the Income Tax Department’s own published text — its page for this instrument.