International Taxation: Taxation of Non-residents' Shipping Business- Section 172 of the Act

CA Mehul Thakker | Last updated: 26 July 2023

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Section 172 of the Income Tax Act governs the taxation of non-resident shipping businesses, specifically for income earned from carrying passengers, livestock, mail, or goods shipped from Indian ports. This section has an overriding effect on other provisions, including Section 44B. It stipulates that 7.5% of the amount paid or payable for such carriage is deemed income accruing in India, taxed at the rate applicable to foreign companies.

Dear CA Final/CMA Final Students, In earlier article, we understood the provisions of section 44B of the Act which deals with taxation of non-residents Shipping Business. Apart from that, there is one more code under the Income Tax Act governing taxation of non-residents shipping business wh

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About the Author

CA Mehul Thakker

Managing Partner

Mr. Mehul Thakker is a Fellow Member of the Institute of Chartered Accountants of India. He is a rank holder in the examinations conducted by ICAI. Expert in the field of Direct Taxes, and conducts advisory and appellate work. Authored three books onPractical aspects of Finance Act, 2003, 2008 and 2009 Authore ... Read more

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