TDS not deductible on payment for time charter of ships to non-resident

ITO Vs Terapanth Foods Limited (ITAT Rajkot)

It is pertinent to note that the CIT(A) has categorically mentioned that Section 195 of the Act would apply only if payment is made which is chargeable under Income Tax Act 1961. The Assessing Officer has not given any reason as to why the chargeability of tax under Section 172 of the Act does not cover time charter of ships for which payment is made to non-resident. The Assessing Officer totally ignored the NOCs issued by Department allowing the ship for sailing in Indian Port as

Please become a Premium member. If you are already a Premium member, login here to access the full content.