103A. Liability to tax in case of air transport business of non-residents.-

1[103A. Liability to tax in case of air transport business of non-residents.-

(1)  Notwithstanding  anything  contained  in  this  Ordinance,  where  a  nonresident person carries on the business of operation of aircraft, as the owner or charterer thereof (hereinafter in this section referred to as "the principal"), and any aircraft owned or chartered by him calls on any airport in Bangladesh, the aggregate  of  the  receipts  arising  from  the  carriage  of  passengers,  livestock, mail or goods loaded at the said airport into that aircraft shall be deemed to be income  received  in  Bangladesh  by  the  principal  from  the  said  business chargeable to tax under the head "Income from business or profession", and tax thereon shall be charged at the rate of three percent of such income.

(2) The principal or an agent authorised by him in this behalf shall prepare and  furnish  to  the  Deputy  Commissioner  of  Taxes,  within  forty-five  days from  the  last  day  of  each quarter  of  every  financial year,  that  is to say,  the thirtieth  day  of  September,  the  thirty-first  day  of  December,  the  thirty-first day of March and the thirtieth day of June, respectively, return in respect of each quarter as aforesaid 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 loaded at the said airport; 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 airport outside Bangladesh.

(3)  On  receipt of  the  return,  the  Deputy  Commissioner  of Taxes  may,  after calling  for  such  particulars,  accounts  or  documents,  as  he  may  require, determine  the  aggregate  of  the  amounts  referred  to  in  sub-section  (2),  and charge tax as laid down in sub-section (1).

(4) Where, the principal fails to pay the tax payable under sub-section (1) for more  than  three  months,  the  Commissioner  of  Taxes  may  issue  to  the authority  by  whom  clearance  may  be  granted  to  that  aircraft,  a  certificate containing the name of the principal and the amount of tax payable by him; and  on  receipt  of  such  certificate,  the  said  authority  shall  refuse  clearance from  any  airport  in  Bangladesh  to  any  aircraft  owned  or  chartered  by  such person until the tax payable has been paid.

(5) 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).

(6) 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 assessee 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.


1Ins. by F.A. 1989 w.e.f the income year relating to the assessment year 1990 -91 and thereafter


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