Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: form 3cd :: VAT Audit :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: TDS :: due date for vat payment :: ACCOUNTING STANDARDS :: empanelment :: VAT RATES
 
 
Service Tax »
 Payment made in revenue sharing deal exempt from service tax
 India seen posting stronger growth as businesses adjust to new tax
 GST High Powered Committee On Return Filing - Representation by GST Research Foundation
  Changes In Central Goods And Services Tax Rules, 2017
 GST return filing to be a breeze for small businesses
 Changes In Central Goods And Services Tax Rules, 2017
 Simple tax made complex
 Govt may review monthly GST return filing process
 Central Goods and Services Tax (Eleventh Amendment) Rules, 2017
 Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017
 Composition Scheme - the Central Goods and Services Tax (Removal of Difficulties) Order, 2017

Govt notifies new rules on tax-free status for Indian seafarers
August, 19th 2015

The government has notified new tax rules for seafarers working on ships flying the Indian flag to help them qualify for non-resident status and end an anomaly that is cited by local fleet owners as the main reason for an acute shortage of sailors to man their vessels.

On Monday, the Central Board of Direct Taxes (CBDT) issued a gazette notification clarifying that the period of stay of seafarers outside India will be calculated from the date stamped on their continuous discharge certificate (CDC)—a seafarer’s identity document—at the time of joining the ship for the voyage till the date entered in the CDC at the time of signing off. As a result, the period spent by a ship in Indian coastal waters is also taken into account for computing the non-resident status and the resultant tax concessions.

“This will give a big boost to Indian shipping,” a shipping ministry spokesman said. “Seafarers working on Indian registered ships will now be on par with those working on foreign ships for the computation of non-resident status.”

A seafarer serving on Indian ships outside India for a period of 182 days or more in a year is considered to be a non-resident. However, the time spent by a ship in Indian territorial waters is considered as period of service in India, according to tax rules framed in 1990.

For instance, an Indian ship going from India to Singapore passes through various Indian ports on its route, such as Nhava Sheva, Kochi, Kandla, etc. Thus, the Indian ship starting its journey from Nhava Sheva in Maharashtra heading for Singapore remains in Indian coastal waters for quite some days before crossing the coastal boundaries of India.

In this case, the number of days outside India of Indian crew working on such Indian ships gets counted only from the date when the Indian ship crosses the coastal boundaries of India.

However, Indian crew serving on foreign ships for 182 days or more are treated as non-resident, irrespective of where the ship trades (including Indian waters).

This led to a continuous drift of personnel from Indian ships to foreign flag ships under the lure of higher “take home” pay packets, without having to pay tax in India due to this unintended differential tax treatment.

“This will help Indian ship owners to retain seafarers,” said B.B. Sinha, a director looking after personnel and administration at Shipping Corp. of India Ltd. “Seafarers don’t have to join foreign ships to get non-resident status, which they were doing so far,” said Sinha, who was selected by the government-headhunter, the Public Enterprises Selection Board, to be the next chief executive of SCI.

“This will help thousands of seafarers get non-resident status,” said Abdulgani Y. Serang, general secretary of the National Union of Seafarers of India (NUSI).

As a result, Indian flag ships, which are by law required to hire only Indian crew, faced an acute shortage of experienced manpower, particularly in the officers category.

On 28 February, while presenting the Union budget for 2015-16, finance minister Arun Jaitley sought to end the anomaly. “In the case of foreign bound ships where the destination of the voyage is outside India, there is uncertainty with regard to the manner and basis of determination of the period of stay in India for crew members of such ships who are Indian citizens,” according to the budget documents.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Services SEO LLC e-boost Search Engine Optimization Services Internet Marketing Services Website Placement Services On-site Webs

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions