Seafarers taxation

Hi Pankaj,

The section 4-2-b of the DTC mentions that the provisions of 4-1-b will not apply for a person who is a citizen of India and leaves India for employment overseas. A seafarer who leaves India for employment overseas on a foreign flag ship qualifies for this exemption and needs only to satisfy clause 4-1-a i.e., 182 days in a year. Would appreciate your comments on this.


asked Feb 09 '11 at 00:54 by byeprem 1111

There is a bit ambiguity in these statements:

(1) An individual shall be resident in India in any financial year, if he is in India
(a) for a period, or periods, amounting in all to one hundred and eighty-two days or more in that year;
(b) for a period, or periods, amounting in all to—
(i) sixty days or more in that year; and
(ii) three hundred and sixty-five days or more within the four years immediately preceding that year.
(2) The provisions of clause (b) of sub-section (1) shall not apply in respect of an individual who is—
(a) a citizen of India and who leaves India in that year as a member of the crew of an Indian ship; or
(b) a citizen of India and who leaves India in that year for the purposes of employment outside India.

There can be a conflict among 2-b and 2-b, as a. clearly specifies that exemption is only available for member of crew of an Indian ship. Whereas b. talk of employment outside India. Now point to see is whether working on a foreign ship comes under employment outside India or not.

Shipping industry leaders have been meeting govt official to get clarifications on all these.

There is still more than a year for DTC to come into play. And we hope that there will be a clarity on this soon.

answered Feb 09 '11 at 14:11 by Pankaj Batra 5.2k320


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Asked: Feb 09 '11 at 00:54

Seen: 5,667 times

Last updated: Feb 09 '11 at 14:11