Shipping income rule: specified portion of carriage receipts treated as taxable in India, with return, assessment and port clearance conditions. Profits of non-resident ships from carriage at Indian ports are taxed by deeming a specified portion of amounts paid for carriage, including demurrage and handling, to be income accruing in India. The ship's master must file a return of such amounts before departure or within a short authorised period where filing before departure is impracticable; the Assessing Officer assesses the deemed income, may require documents, and the master is liable for payment. Port clearance is withheld until tax is paid or satisfactory arrangements made. Payments under this regime are creditable as advance tax if the owner elects a full assessment of total income for the tax year.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Shipping income rule: specified portion of carriage receipts treated as taxable in India, with return, assessment and port clearance conditions.
Profits of non-resident ships from carriage at Indian ports are taxed by deeming a specified portion of amounts paid for carriage, including demurrage and handling, to be income accruing in India. The ship's master must file a return of such amounts before departure or within a short authorised period where filing before departure is impracticable; the Assessing Officer assesses the deemed income, may require documents, and the master is liable for payment. Port clearance is withheld until tax is paid or satisfactory arrangements made. Payments under this regime are creditable as advance tax if the owner elects a full assessment of total income for the tax year.
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