102. Liability to tax in case of shipping business of non-resident.-

1[102.  Liability  to  tax  in  case  of  shipping  business  of  non-resident.-

(1) Notwithstanding anything contained in this Ordinance, where a non resident carries on the business of operation of ships as the owner or charterer thereof (hereinafter in this section referred to as the principal) tax shall be levied and collected in respect of such business in accordance with the provisions of this section.

(2) Before the departure from any port in Bangladesh of any ship, the master  of the ship shall prepare and furnish to the Deputy Commissioner of Taxes a return showing-

(a) the amount paid or payable whether in or out of Bangladesh to the principal, or to any person on his behalf, on account of the carriage of passengers, livestock, mail or goods shipped at the port since the last arrival of the ship; and
(b) the amount received, or deemed to be received in Bangladesh by, or on behalf of, the principal on account of the carriage of passengers, livestock, mail or goods at any port outside Bangladesh.

(3)  On  receipt  of  the  return,  the  Deputy  Commissioner  of  Taxes  shall determine the aggregate of the amounts referred to in sub-section (2) and, for this purpose, may call for such particulars, accounts or documents,  as he may require and the aggregate of the said amounts so determined, shall be deemed to be income received in Bangladesh by the principal from the said business chargeable to tax under this Ordinance under the head "Income from business or profession", and tax thereon shall be charged at the rate of eight per cent. of such income.

(4)  Where  the  Deputy  Commissioner  of  Taxes  is  satisfied  that  it  is  not possible  for  the  master  of  the  ship  or  the  principal  to  furnish  the  return required under subsection (2) before the departure of the ship from the port and  the  principal  has  made  satisfactory  arrangements  for  the  filing  of  the return and payment of the tax by any other person on his behalf, the Deputy Commissioner  of  Taxes  may,  if  the  return  is  filed  within  thirty  days  of  the departure of the ship, deem the filing of the return by the person so authorised by the principal as sufficient compliance with sub-section (2) 2[:

Provided that where any charge mentioned in sub-section (8) is accrued after the expiry of said thirty days, the other person mentioned in this sub-section shall file a supplementary return in respect of such charge and pay tax thereon within next thirty days from the end of the month in which the charge has accrued.]


(5) No port clearance shall be granted to the ship until the 3[Commissioner of Customs] or any other officer duly authorised to grant the same, is satisfied that  the  tax  payable  under  sub-section  (3)  has  been  duly  paid  or  that satisfactory arrangements have been made for the payment thereof.

(6) Nothing contained in this Ordinance shall be so construed as to allow any expense  against  the  aggregate  amount  of  receipts  as  determined  under subsection (3).

(7) The tax paid under this section shall be deemed to be the final discharge of the tax liability of the assessee under this Ordinance, and the asse ssee shall not be required to file the return of total income under section 75 nor shall he be entitled to claim any refund or adjustment on the basis of such return.]

4[(8) For the purpose of this section, the amount referred to in sub-section (2) shall include the amount paid or payable by way of demurrage charge or handling charge or any other amount of similar nature.] 


1Subs. by F.A. 1989

2Subs. by F.A. 2017

3Subs. for "Collector of Customs" by F.A. 1999

4Subs. by F.A. 2017

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