INCOME TAX
INSTRUCTION NO. 5203/1994
Dated: January 21, 1994
Section(s) Referred: 172
Statute: Income - Tax Act, 1961
Please refer to your letter D.O.No.CC.II/G(34)/93-94 dated 16th July, 1993 addressed to the then Joint Secretary (FT&TR) regarding taxation of shipping companies.
2. The computation of tax @ 7 1/2 of the freight carriage should be so regulated that the total tax collected does not exceed the said 7 1/2% 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.
F.No. 480/6/92-FTD