NORASIA CONTAINER LINES LTD Vs. STATE

JUDGEMENT

(1.) 1. In this application under Section 245Q(1) of the Income-tax Act, 1961 (for short "the Act"). The applicant a non-resident, seeks an advance ruling of this Authority on the following question :

(2.) The applicant is a company registered in Malta and is engaged in the business of operating merchandise vessels in international waters. The applicant has no office in India and the control and management of all its affairs are situated out of India. The income in question is the freight income earned from operating merchandise vessels in international waters only. The applicant has enclosed a certificate of June 20, 2000, from the Office of Inland Revenue Department, Malta, to the effect that it is assessed to tax on a world wide income basis. It is stated that the Government of the Republic of India and the Republic of Malta entered into "Double Taxation Avoidance Agreement" (DTAA) on September 28, 1994. The applicant is governed under the DTAA. As per article 8 of the DTAA the income of the applicant is not liable to be taxed in India.