DGGI drops Rs.30 Bn tax demand on foreign shipping firms
PORTS & SHIPPING

DGGI drops Rs.30 Bn tax demand on foreign shipping firms

The Directorate General of GST Intelligence (DGGI) has dropped a ?30 billion tax demand against 18 foreign shipping companies for the financial year 2018. This decision comes after the authorities determined that the companies had followed the regulations set under Indian tax laws, rendering the demand unnecessary.

Initially, DGGI had raised concerns that these foreign shipping firms failed to comply with tax requirements under the Goods and Services Tax (GST) for services rendered in India. However, after a detailed investigation and consultations with the concerned firms, DGGI decided to withdraw the tax demand.

Foreign shipping firms had argued that they were already paying taxes in their home countries under international tax treaties, which allow them to avoid double taxation. These companies were providing critical shipping and transport services to Indian exporters and importers, essential for facilitating global trade.

The cancellation of the demand offers significant relief to the shipping companies, especially given the complexities of tax compliance across international jurisdictions. It also reflects India?s efforts to maintain a business-friendly environment while ensuring clarity on cross-border taxation rules.

Experts believe that this move will ease concerns in the shipping industry and boost foreign players' confidence in conducting business in India. The decision by DGGI is seen as a step toward smoother operations for international shipping lines working within Indian waters.

The Directorate General of GST Intelligence (DGGI) has dropped a ?30 billion tax demand against 18 foreign shipping companies for the financial year 2018. This decision comes after the authorities determined that the companies had followed the regulations set under Indian tax laws, rendering the demand unnecessary. Initially, DGGI had raised concerns that these foreign shipping firms failed to comply with tax requirements under the Goods and Services Tax (GST) for services rendered in India. However, after a detailed investigation and consultations with the concerned firms, DGGI decided to withdraw the tax demand. Foreign shipping firms had argued that they were already paying taxes in their home countries under international tax treaties, which allow them to avoid double taxation. These companies were providing critical shipping and transport services to Indian exporters and importers, essential for facilitating global trade. The cancellation of the demand offers significant relief to the shipping companies, especially given the complexities of tax compliance across international jurisdictions. It also reflects India?s efforts to maintain a business-friendly environment while ensuring clarity on cross-border taxation rules. Experts believe that this move will ease concerns in the shipping industry and boost foreign players' confidence in conducting business in India. The decision by DGGI is seen as a step toward smoother operations for international shipping lines working within Indian waters.

Next Story
Infrastructure Energy

KEC Secures Rs 10, 380 Mn Substation Order in Saudi Arabia

KEC International Ltd., a global infrastructure EPC major, and an RPG Group company, has secured a new order worth Rs 10,380 million for the Design, Supply and Installation of a 380 kV GIS Substation in Saudi Arabia.Vimal Kejriwal, MD & CEO, KEC International Ltd., commented, “We are delighted with the successive order wins in our T&D business. In a landmark achievement, we have secured our largest ever substation order. This prestigious order in the Middle East has widened our portfolio and strengthened our presence in the region. With this strategic win, our year-to-date or..

Next Story
Infrastructure Urban

Central Bank of India executes first fully digital SCF deal on PSB Xchange

In a major advancement for India’s banking sector, Central Bank of India (CBI) has successfully completed the country’s first fully digital supply chain finance (SCF) transaction on PSB Xchange—a unified multi-lender platform launched by PSB Alliance. PSB Xchange is designed to connect public and private sector banks, NBFCs, and fintechs with corporates and their channel partners to facilitate supply chain finance and small business loans. The transaction marks the first time a fintech-originated corporate lead has been seamlessly processed through the PSB Xchange ecosystem. The lead fl..

Next Story
Infrastructure Energy

Atlanta Electricals secures Rs 1,835 Mn transformer order from BNC Power

Atlanta Electricals Limited (“Atlanta”) has secured an order worth Rs 1,835 million from BNC Power Projects Ltd for the supply of extra high voltage (EHV) transformers and a bus reactor for its Pugal site. The contract includes a mix of 315 MVA, 400 KV and 100 MVA, 132 KV transformers along with a 400 KV bus reactor. The project scope encompasses design, manufacturing, testing, and supply to the project site. Deliveries will be sequenced following engineering and drawing approvals, offering multi-quarter execution visibility and ensuring a steady production run-rate. The order will be ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?