+
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.

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code