Advance Ruling on taxability of profits from international operations of ships

Facts

• The applicant is a non-resident shipping Company incorporated under the laws of Switzerland and is in the business of shipping contracts for the transportation of cargo worldwide. During the financial years 2007-08 and 2008-09, the applicant entered into a shipping contract for transportation of cargo from Indian ports to China.
• The amount of freight for transportation of cargo from the Indian port to a port outside India was invoiced and received by the applicant.
• For the relevant years the applicant appointed a port agent in India for handing the cargo. The port agent on behalf of the applicant, deposited tax at 7.5% of the freight charges received by the applicant, under section 172 of the Income tax Act, 1961(„the Act?)

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