Assessment of non-resident in respect of the shipping business
176. (1) The assessment of the income from the business of operation of ships (including an arrangement such as slot charter, space charter or joint charter) shall, regardless of anything to the contrary contained in any other provisions of this Code, be made in accordance with the provisions of this section.
(2) The master of a ship belonging to, or chartered by, a non-resident shall, before the departure of the ship, furnish to the Assessing Officer a return of the full amount of transportation charges accrued to, or received by, the owner or charterer, since the last arrival of the ship in that port.
(3) The requirement of furnishing the return shall be deemed to have been complied with, if -
(a) the Assessing Officer is satisfied that-
(i) it is not possible for the master of the ship to furnish the return before the departure of the ship from the port; and
(ii) the master of the ship has made satisfactory arrangements for furnishing the return and payment of tax; and
(b) the return is furnished within thirty days of the departure of the ship by any person authorized by the master of the ship.
(4) On receipt of the return, the Assessing Officer shall -
(a) assess the income referred to in sub-section (1), after calling for such documents as he deems fit; and
(b) determine the sum payable as tax thereon at the rates applicable to the total income of a foreign company.
(5) The sum determined under sub-section (4) shall be payable by the master of the ship or any other person authorised by him.
(6) A port clearance shall not be granted to the ship until the Commissioner of Customs, or other officer duly authorised to grant it, is satisfied that the tax assessable under
this section has been duly paid or that satisfactory arrangements have been made for the payment.
(7) Nothing in this section shall prevent the assessment of the income, referred to in sub-section (1), for the relevant financial year of the owner, or charterer, of the ship in accordance with the other provisions of this Code, at his option.
(8) Any payment of tax made under this section shall be treated as advance tax, in case an assessment is made as envisaged in sub-section (7).
