Tribunal held that ,as per CBDT Circular No. 723 dated 19-9-1995, payment made to shipping agents of non-resident shipowners did not require deduction of tax at source Tribunal also held that the department had already granted exemption certificate to non-resident ship owners that there was no obligation on assessee to deduct tax at source in respect of payments made to their shipping agents accordingly no disallowances can be made . ( AY. 2014-15)
ACIT v. Safe Decore (P.) Ltd. (2018) 169 ITD 328/165 DTR 339 /193 TTJ 898 (Jaipur) (Trib.)
S.40(a)(ia):Amounts not deductible – Deduction at source –Handling charges paid to shipping agents of non-resident shipping companies was held to be not liable to deduct tax at source, and also the department had already granted exemption certificate to non-resident ship owners . [ S.194C ]