Section 61 — Special provision for computation of income on presumptive basis in respect of certain business activities of certain non-residents

(1) The provisions of sections 26 to 54, to the extent contrary to this section,
shall not apply to the manner of computation of profits and gains of the
specified business in sub-section (2).
(2) The profits and gains of any specified business as mentioned in column B of
the Table below, carried on by a specified assessee as mentioned in column C of the
said Table during a tax year, shall be computed in the manner specified in column
D thereof, and shall be deemed to be the profits and gains of such business of such
assessee chargeable to tax for the said tax year under the head “Profits and gains
of business or profession”.
TABLE
Sl
No.
Specified business Specified
assessee
Profits and gains of business or
profession
A B C D
1. Business of opera-
tion of ships, other
than cruise ships
referred to in Serial
number 2.
Non-
resident.
7.5% of (A+B),
where,—
A = sum on account of carriage of
passengers, livestock, mail or goods
shipped at any port in India, whether
paid or payable, in or outside India, to
the assessee or any other person on his
behalf (including demurrage, handling
or other similar charges);
B = sum on account of carriage of
passengers, livestock, mail or goods
shipped at any port outside India,
whether received or deemed to be
received in India, by the assessee or any
other person on his behalf (including
demurrage, handling or other similar
charges).
Sl
No.
Specified business Specified
assessee
Profits and gains of business or
profession
A B C D
2. Business of opera -
tion of cruise ships
(subject to the con -
ditions as may be
prescribed).
Non-
resident.
20% of (A+B),
where,—
A = sum on account of carriage of
passengers, paid or payable to the
assessee or any other person on his
behalf;
B = sum on account of carriage of
passengers received or deemed to be
received by the assessee or any other
person on his behalf.
3. Business of opera-
tion of aircraft.
Non-
resident.
5% of (A+B),
where,—
A = sum on account of carriage of
passengers, livestock, mail or goods from
any place in India, paid or payable (in
or outside India) to the assessee or any
other person on his behalf;
B = sum on account of carriage of
passengers, livestock, mail or goods
from any place outside India, received
or deemed to be received in India, by
the assessee or any other person on his
behalf.
4. Business of civil
construction or erec-
tion or testing or
commissioning, of
plant or machinery,
in connection with a
turnkey power proj-
ect, approved by the
Central Government.
Foreign
company.
10% of the amount towards such civil
construction, erection, testing, or
commissioning, paid or payable, to the
assessee or to any other person on his
behalf, whether in or outside India.
5. Business of pro -
viding services or
facilities (includ -
ing supply of plant
and machinery on
hire) for prospect -
ing, extraction or
Non-
resident.
10% of (A+B),
where,—
A = sum on account of business of
providing services and facilities in
connection with, or supply of plant and
machinery on hire used, or to be used,
Sl
No.
Specified business Specified
assessee
Profits and gains of business or
profession
A B C D
production of min -
eral oils.
in the prospecting for, or extraction
or production of mineral oils in India,
paid or payable (in or outside India),
to the assessee or any other person on
his behalf;
B = sum on account of business of
providing 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,
received or deemed to be received in
India, by the assessee or any other person
on his behalf.
6. Business of pro -
viding services or
technology in India,
for the purposes of
setting up an elec -
tronics manufac -
turing facility or
in connection with
manufacturing or
producing electron-
ic goods, article or
thing in India to a
resident company.
Non-
resident.
25% of (A + B),
where,—
A = the amount paid or payable to the
non-resident assessee or to any person
on his behalf on account of providing
services or technology;
B = the amount received or deemed to
be received by the non-resident assessee
or on behalf of non-resident assessee
on account of providing services or
technology.
(3) For the purposes of sub-section (2) (Table: Sl. Nos. 4 and 5) the specified assessee
may claim that the profits actually earned from the specified business are lower
than the business profits computed under sub-section (2), if,—
( a) he keeps and maintains such books of account and other documents as
required under section 62; and
( b) gets his accounts audited and furnish a report of such audit as required
under section 63.
(4) Any loss, allowance or deduction allowable under the provisions of this Act
shall not be allowed against the income computed in the manner specified in
sub-section (2).
(5) The written down value of any asset used for the purposes of specified business
or profession shall be computed, as if the assessee mentioned in column C of the
Table in sub-section (2) had claimed and was actually allowed depreciation thereon
for each of the relevant tax years.
(6) For the purposes of sub-section (2) (Table: Sl. No. 5) the provisions of this sec-
tion shall not apply where the provisions of section 54 or 59 or 207 or 527 apply
for the purposes of computing profits and gains or any other income referred to in
the said sections.
(7) For the purposes of sub-section (2) (Table: Sl. No. 5), “plant” includes ships,
aircrafts, vehicles, drilling units, scientific apparatuses and equipments used for
the purposes of the specified business.
(8) For the purposes of sub-section (2) (Table: Sl. No. 6), resident company shall
satisfy the following:—
( a) it is establishing or operating electronics manufacturing facility or a con-
nected facility for manufacturing or producing electronic goods, article
or thing in India, under a scheme notified by the Central Government
in the Ministry of Electronics and Information Technology; and
( b) it satisfies the conditions as may be prescribed in this behalf.
(9) The provisions of sections 59 and 207 shall not apply to amounts referred to in
sub-section (2) (Table: Sl. No. 6).