Applicability of provisions of Section 44B, Income Tax

[HARSHA JOSHI]

for delivering materials from mudra port to vizag port (i.e. within India ), we quite often use ships owned by a non-resident company based in U.A.E.My question is whether provisions of S.44B is applicable? I think,S.172 is not applicable to this case. though the quantum of TDS remains the same.the word regularity of business U/S S.44B is not specified. kindly advise.

Posts / Replies

[Ravi Chopra]

Since the ship is being owned by a non resident company based in U.A.E, either of the sections i.e. 44B and 172 are applicable depend on the nature of business - a regular business or occasional business. When you often use the services of a ship, it gives an impression that the ship is engaged in regular business.