Notification U/s 195 of the Income tax Act, 1961
SUNIL GUPTA
(Querist) 04 May 2009
This query is : Resolved
“THE GOVERNMENT HAS ISSUED A NOTIFICATION DATED MARCH 25, 2009, SPECIFYING THE NEW PROCEDURE TO BE ADOPTED BY COMPANIES FOR EFFECTING REMITTANCES TO NON- RESIDENTS AND FOREIGN COMPANIES, UNDER SECTION 195 OF THE INCOME TAX ACT, 1961 WHICH WILL COME INTO FORCE FROM JULY 1, 2009.”
My Quarries are
(a) Whether any payment / payments made by Indian Representative (IR) to foreign principal, against cruise booking from Indian resident whether in Indian currency or foreign currency covered U/s 195 of the income tax act, 1961.
(b) Cruises are not entering in Indian Territory, whether service tax on commission received by IR, applicable.
(c) Some cruises are entering in Indian Territory, than what is the position of service tax.
Send your reply on my e-mail id skg_asso@rediffmail.com, skg.asso@gmail.com
(CA SUNIL GUPTA)
A V Vishal
(Expert) 05 May 2009
[Special provision for computing profits and gains of shipping business in the case of non-residents.
44B. (1) Notwithstanding anything to the contrary contained in sections 28 to 43A, in the case of an assessee, being a non-resident, engaged in the business of operation of ships, a sum equal to seven and a half per cent of the aggregate of the amounts specified in sub-section (2) shall be deemed to be the profits and gains of such business chargeable to tax under the head Profits and gains of business or profession.
The amounts referred to in sub-section (1) shall be the following, namely :
(i) the amount paid or payable (whether in or out of India) to the assessee or to any person on his behalf on account of the carriage of passengers, livestock, mail or goods shipped at any port in India; and
(ii) the amount received or deemed to be received in India by or on behalf of the assessee on account of the carriage of passengers, livestock, mail or goods shipped at any port outside India.]
44[Explanation.For the purposes of this sub-section, the amount referred to in clause (i) or clause (ii) shall include the amount paid or payable or received or deemed to be received, as the case may be, by way of demurrage charges or handling charges or any other amount of similar nature.]
In view of the above provisions the case is covered u/s.195.
