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2009 (9) TMI 36 - AAR - Income TaxCharter of Vessels – Permanent Establishment - The applicant, during the relevant years appointed JM Baxi & Co. as its port agent in India for handing the cargo. The activities of JM Baxi & Co., an independent shipping and logistics service provider consists of shipping agency services, charter brokering services and clearing and forwarding agent services. J.M.Baxi & Co. is working as port agent in India on behalf of several other shipping companies. JM Baxi & Co. has, on behalf of the applicant, deposited income-tax under S.172 of the IT Act, on 7.5% of the freight charges received by the applicant. – Held that – The shipping profit is not taxable in India – There is Permanent Establishment in India - freight income received by the applicant on account of carrying the cargo from the Indian ports to the foreign ports by deploying chartered vessels is liable to be taxed in India
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