Section 44B covers provision under Income Tax Act for taxation of income of non-resident engaged in shipping business .
There are certain provisions in the IT Act, which provide that the total income of non-residents engaged in certain specific business are to be computed on the basis of certain percentage of their gross total receipts like Section 44B, Section 44BB, Section 44BBB and Section 44BBA of Income Tax Act .
SHIPPING BUSINESS OF NON RESIDENTS – Who can opt for presumptive tax provisions of Section 44B
- Any non-resident engaged in business operation of ships may opt for presumptive taxation under Section 44B
- Profits and gains of a non-resident engaged in the business of operation of ships are to be taken @ 7.5% of the aggregate of the specified receipts.
SHIPPING BUSINESS OF NON RESIDENTS – Section 44B
Specified receipts for the purpose of determining presumptive income under Section 44B shall be the following : –
Receipts from goods shipped at any port in India : –
- Amount paid or payable, whether in India or Outside India, to the assessee or to any person on his behalf
- on account of carriage of passengers, livestock, mail or goods shipped at any port in India; and
Receipts from goods shipped at any port outside India : –
- Amount received in India or deemed to be received in India by assessee or on behalf of the assessee on account of the carriage of passengers, livestock, mail or goods shipped at any port outside India.