Section 9(1)(vii)(c) — the law in short
What the courts have decided on section 9(1)(vii)(c), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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Ishikawajima-Harima Heavy Industries Ltd v DIT
Supreme CourtHelps taxpayerSuperseded by amendment
Our turnkey contract has offshore supply and offshore services alongside Indian work. Is the whole contract taxable in India?
No — a composite turnkey contract can be split. Profits on equipment supplied and paid for outside India, where title passes outside India, are outside the Indian charge, because the contract being signed in India is immaterial and there must be a sufficient territorial nexus. On offshore services the Court read s.9(1)(vii) as requiring the services to be both utilised in India and rendered in India; that second requirement has since been removed retrospectively by statute, so only the offshore supply holding survives on the domestic law side.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.