Tax on income of non resident shipper

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SUNILKUMAR WADHWANI (Querist)

20 February 2014 amount received from shiping goods outside india by the resident agent of the non resident shipper who computes his income under section 172 of income tax act. so whether amount received by agent will be taxable under sec 172 or sec 44B .

SUNILKUMAR WADHWANI

SUNILKUMAR WADHWANI (Querist)

22 February 2014 amount received from shiping
goods outside india by the
resident agent of the non
resident shipper who computes
his income under section 172 of
income tax act. so whether
amount received by agent will be
taxable under sec 172 or sec
44B .

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

26 July 2025 Here’s a clear explanation for your query regarding tax on income of a **non-resident shipper’s resident agent**:

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### Context:

* A **non-resident shipper** ships goods outside India.
* The **resident agent** in India receives commission/amount from the non-resident shipper.
* The question is: Under which section of the Income Tax Act should the resident agent compute his income—**Section 172** or **Section 44B**?

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### Relevant Sections:

1. **Section 44B**:

* Applicable to a **non-resident shipper**.
* It prescribes a **presumptive tax** on the income of a non-resident shipping company from shipping operations.
* The non-resident shipper’s income from shipping is taxed under Section 44B.

2. **Section 172**:

* Applies to **resident agents of non-resident shippers**.
* Income of the resident agent from commission or agency business is computed under normal provisions of Income Tax Act, i.e., under Section 172 which deals with agency business income computation.
* The resident agent computes taxable income on **commission or remuneration received** from the non-resident shipper.

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### Answer:

* The **non-resident shipper’s income** from shipping operations is taxable under **Section 44B**.
* The **resident agent’s income** (commission or amount received) is taxable under **Section 172** as per normal provisions of Income Tax Act.
* The resident agent cannot be taxed under Section 44B, because Section 44B is specific to non-resident shippers.

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### Summary:

| Person | Income Type | Relevant Section for Taxation |
| -------------------- | --------------------------------- | -------------------------------- |
| Non-resident shipper | Income from shipping operations | Section 44B (Presumptive Tax) |
| Resident agent | Commission/agency income received | Section 172 (Normal computation) |

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If you want, I can help explain how the resident agent should compute and file his return under Section 172 or any other details. Just let me know!

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