S. 172 No TDS on payment to non-resident shipping companies

Brief of the Case Bombay High Court held that there was no obligation to deduct tax at source in respect of payment made towards demurrage charges in cases where section 172 of the IT Act applies. The Revenue did not dispute in the present case that section 172 applied. Section 172 covers the case of an assessee who is a non-resident and engaged in the business of operation of ships. It further states that a sum equal to 7 % of the aggregate of the amount specified in sub- section (2) of section 44B as deemed to be profits and gains of such business chargeable to tax under the head “Profits...