section 172

[ITOINTLTAXNVSP]

The singapore based shipping company has taken a ship on time charter for one trip from a hongkong ship owner and shipped its own cargo from India to China and claim that since it is a time charter, it is the disponent owner and eligible for benefit of DTAA between India and Singapore.My contention is that though the charter party is named as time charter, it is basically a voyage charter since it is for one trip only between India and China. The Singapore company has not earned any freight income from the above voyage since it transported its own cargo.Here the beneficiary of the income for the above voyage is the Hongkong company and tax is payable in India on the income earned since there is no DTAA between India and Hongkong.

Please post expert comments on my view.