Non-resident shipping concerns paying tax u/s 172,IT act 1961 required not to pay advance tax u/s 210 of Income Tax Act, 1961 in respect of their income from shipping business. - Income Tax - 1028/CBDT

INSTRUCTION NO. 1028/CBDT Dated : November 24, 1976 Section(s) Referred: 172 Statute: Income - Tax Act, 1961 It has been represented to the Board that non-resident shipping concerns paying tax u/s 172 of the Income-tax Act, 1961 should not be required to pay advance tax u/s 210 of the Income-tax Act, 1961 in respect of their income from shipping business. 2. Section 172 of the Income-tax Act, 1961 provides a special mode of levy and recovery of tax before any ship which carries passengers, livestock, mail or goods, belonging to or chartered by a non-resident, can leave an Indian port. The Board have decided that advance tax notices u/s 210 of the Income-tax Act need not be issued to such non-resident shipping owners or charterers in relation to income deemed to accrue or arise in India vide section 172(2) of the Income-tax Act, 1961. However, where non-resident shipping owners or charterers have any income other than that covered by section 172(2) of the Income-tax Act, 1961, there will be no bar to the issue of advance tax notices in relation to such income.