Dismissing the appeal of the Revenue the Court held that where agents act on behalf of non-resident ship-owners or charterers, they would step into shoes of principal and hence, provision of section 172 would apply and not provision of sections 194C and 195. Not liable to deduct tax at source. (AY. 2010-11)
PCIT v. Bajaj Herbals (P.) Ltd. (2023) 335 CTR 530 / 148 taxmann.com 147 (Guj)( HC)
S. 40(a)(ia): Amounts not deductible-Deduction at source-Non-resident-Shipping business-Where agents act on behalf of non-resident ship-owners or charterers, they would step into shoes of principal and hence, provision of section 172 would apply and not provision of sections 194C and 195-Not liable to deduct tax at source.[S. 171, 194C, 195, 260A]