Applicability of provisions of Section 44B

[ASHISH DESAI]

for delivering materials from mudra port to vizag port (i.e. within India ), we quite often use ships owned by a non-resident company based in U.A.E.My question is whether provisions of S.44B is applicable? I think,S.172 is not applicable to this case. though the quantum of TDS remains the same.the word regularity of business U/S S.44B is not specified. kindly advise.

AI Summary

Clarification on Section 44B of the Income Tax Act: Regular use of UAE-owned ships within India may trigger applicability. A query was raised about the applicability of Section 44B of the Income Tax Act for using ships owned by a non-resident company from the UAE to transport materials within India. The inquirer believed Section 172 might not apply, despite similar TDS implications, and sought clarification on the term 'regularity of business' under Section 44B. The response clarified that either Section 44B or 172 could apply depending on whether the business is regular or occasional. Frequent use of the ship suggests it is engaged in regular business, potentially making Section 44B applicable.