NOC issued in respect of freight charges.

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....rt contracts on FOB basis and shipping arrangements for cargo are to be made by the Chartering Wing (TRANSCHART) of Ministry of Surface Transport. For making shipping arrangements cargo preference is given to Indian ships without any price preference. In the event of non-availability of suitable Indian vessels in required position, foreign vessels are chartered at the most competitive freight rate....

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....ttances of this 10%, the normal practice has been to issue a No objection Certificate for the remittance of 10% without deduction of tax at source on the ground that income has not accrued in India. The Reserve Bank of India is, however, now insisting that an NOC should be obtained in respect of the entire 100% of the freight charges before the remittance is permitted. No income-tax is payable in....