INCOME TAX Taxation of shipping Companies INSTRUCTION NOnbsp52031994 nbspDated January 21 1994 Sections Referred 172 Statute Income  Tax Act 1961 Please refer to your letter DONoCCIIG349394 dated 16th July 1993 addressed to the then Joint Secretary FTampTR regarding taxation of shipping companies 2 The computation of tax  7 12 of the freight carriage should be so regulated that the total tax collected does not exceed the said 7 12 of the payments made by the Indian exporter either individually or collectively to the owners of the mother vessel and the daughter vessel for carriage of goods etc from an Indian port to the port of ultimate destination 3 You may inform field officers accordingly FNo 480692FTD nbsp