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Report No. 12

H-Shipping business of non-residents.

182. Shipping business of non-residents.-

The provisions of this section shall, notwithstanding anything contained in the other provisions of this Act, apply for the purpose of the levy and recovery of tax in the case of a non-resident who carries on business in India in any financial year as the owner or charterer of a ship (such person hereinafter in this section being referred to as the principal).

[Section 44A, earlier part]

(2) Where a ship of the principal carries passengers, livestock, mail or goods shipped at a port in India, one-sixth of the amount paid or payable on account of such carriage to the principal or to any person on his behalf, whether that amount is paid or payable in or out of India, shall be deemed to be income accruing in India to the principal on account of such carriage.

[Section 44B(2), latter half]

(3) Before the departure from any port in India of any such ship the master of the ship shall prepare and furnish to the Income-tax Officer a return of the full amount paid. or payable to the principal, or to any person on his behalf, on account of the carriage of all passengers, livestock, mail or goods shipped at that port since the last arrival of the ship thereat.

[Section 44B(1)]

(4) On receipt of the return, the Income-tax Officer shall assess the income referred to in sub-section (2) and determine the sum payable as tax thereon at the rate or rates for the time being applicable to the total income of a company which has not "made the arrangements referred to in section 203 [18(3D), main para.], and such sum shall be payable by the master of the ship.

[Section 44B(2), earlier half, part] (Section 44B(3), earlier part]

(5) For the purpose of determining the tax payable under sub-section (4), the Income-tax Officer may call for such accounts or documents as he may require.

[Section 44B(2), earlier half, part]

(6) A port clearance shall not be granted to the ship until the Customs- Collector, or other officer duly authorised to grant the same, is satisfied that the tax assessable under this section has been duly paid.

[Section 448(3), latter part]

(7) Nothing in this section shall be deemed to prevent the principal from claiming in the financial year following that in which any payment has been made on his behalf under this section, that an assessment be made of his total income of the previous year, and that the tax payable on the basis thereof be determined in accordance with the other provisions of this Act, and if he so claims, any such payment as aforesaid shall be treated as a payment in advance of the tax leviable in the relevant assessment year, and the difference between the sum so paid and the amount of tax found payable by him on such assessment shall be paid by him or refunded to him, as the case may be.

[Section 44C]

(8) The provisions of this section shall not apply where the Income-tax Officer is satisfied that there is an agent of the principal from whom the tax will be recoverable in the relevant assessment year under the other provisions of this Act.

[Section 44A, latter part]

Income-Tax Act, 1922 Back

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