India: Income from container services | KPMG | GLOBAL

India: Income from container services; no PE under Singapore treaty

India: Income from container services

The Mumbai Bench of the Income-tax Appellate Tribunal held that income arising from container services cannot be treated as income arising from a shipping business because the taxpayer did not own, charter or lease any vessel or ship.


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The tribunal found that the taxpayer was simply providing container services to various clients, and hence, the provisions of section 44B of the Income-tax Act, 1961 were not applicable. The tribunal concluded that the income was taxable as business income; however; absent a permanent establishment under the India-Singapore income tax treaty, none of the income was taxable in India. The case is: Forbes Container Line Pte. Ltd. 


Read a March 2016 report [PDF 308 KB] prepared by the KPMG member firm in India: Income arising from container services is not taxable under Section 44B of the Income-tax Act. In the absence of a PE under the India-Singapore tax treaty, the business income is not taxable in India   

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