Income-tax Act, 2025

Shipping business of non-residents - Section 316

8. Profits of non-residents from occasional shipping business

Shipping business of non-residents.

316. (1) Irrespective of anything in the other provisions of this Act, the provisions of this section shall apply for the purpose of levy and recovery of tax in the case of any ship, belonging to or chartered by a non-resident, which carries passengers, livestock, mail or goods shipped at a port in India.

(2) Where such a ship carries passengers, livestock, mail or goods shipped at a port in India,

(a) 7.5% of the amount paid or payable on account of such carriage shall be deemed to be income accruing in India to the owner or charterer on account of such carriage, whether that amount is paid or payable in or out of India; and

(b) the amount referred to in clause (a) shall include the amount paid or payable by way of demurrage charge or handling charge or any other amount of similar nature.

(3) Before the departure from any port in India of any such ship, the master of the ship shall prepare and furnish to the Assessing Officer a return of the full amount paid or payable to the person as mentioned in sub-section (2) or any person on his behalf on account of such carriage shipped at that port since the last arrival of the ship thereat.

(4) The requirement of furnishing the return as per sub-section (3) shall be deemed to have been complied with, if

(a) the Assessing Officer is satisfied that

(i) it is not possible for the master of the ship to furnish the return before the departure of the ship from the port; and

(ii) the master of the ship has made satisfactory arrangements for filing of the return and payment of tax by any other person on his behalf; and

(b) the return is filed within thirty days of the departure of the ship by any person so authorised by the master.

(5) On receipt of the return, the Assessing Officer shall

(a) assess the income referred .... To read the full section download the app from Google Play store