Shipping line business - Calling into two Indian ports as part of charter party arrangement - denial of Article 8/24 of the India Singapore DTAA 

Facts:

Assessee was the agent for a Singapore owned entity which operated a Panama flagged vessel by name MV New Caledonia Maru. As part of a charter party arrangement the vessel connected and carried cargo between two Indian ports viz. Mundra and Mumbai. Revenue's plea was that these were journeys performed between Indian ports only and were not part of the international carriage of shipping lines and thus as per Section 172 - 7.5% of the freight revenue was added as taxable freight revenue in India and assessee was called to pay tax @ 40% as applicable to a non-resident on the same. Assessee's plea was their principals were a Singapore resident and were liable in Singapore and the vessel operated on feeder vessel for that one leg and thereafter was in international waters on various voyages. CIT(A) upheld the views of the AO. On further appeal - 

Held in favour of the assessee that they were eligible for India - Singapore DTAA - Article 8 exemption for international shipping business.

Applied:

CIT v. Taurus Shipping Services (Tax Appeal No. 847 to 849 of 2015 order dated 01-12-2015) : 2015 TaxPub(DT) 5090 (Guj-HC).

Case: Magnum Shipping Services v. ITO 2023 TaxPub(DT) 4639 (Rajkot-Trib)