Section 44B & 172 - Special provision for computing profits and gains of shipping business in case of non-residents

Presumptive shipping income rule treats freight receipts as deemed business income, with advance recovery and port clearance conditions.

A presumptive regime deems a fixed proportion of amounts paid or payable for carriage from an Indian port to be the shipping owner's or charterer's business income; lower income cannot be shown and general computation provisions are not applicable. The ship's master must furnish a return before departure listing amounts paid or payable; the assessing officer then assesses income and determines tax at rates for foreign companies. Demurrage and handling charges are included; port clearance is withheld until tax is paid or satisfactory arrangements are made.