Kalpesh Classes

Question 1 (SLID 007) (Revision ​​ / Home work) ​​ (Non Resident Shipping / air crafts 172, 44B, 44BBA)

M/s Global Airlines incorporated as a Company in USA​​ operated its flights to India and vice versa during the year and collected charges of Rs.125 Lakhs for carriage of passengers and cargo out of which Rs.65 Lakhs were received in US dollars for the Passenger Fare booked from New York to Mumbai. The total expenses for the year on operation of such flights were Rs. 195 Lakhs. Income chargeable to tax of the foreign airlines may please be computed.

Question 2 (ID 022) (Revision ​​ / Home work) (Non Resident Shipping / air crafts 172, 44B, 44BBA)

The assessee was​​ non-resident shippers. ​​ During the relevant years, assessments were made under section 172(4) in respect of the fright earnings. On regular assessment under section 172(2) as claimed by the assessee the Assessing Officer, found that the total income assessed was far less than the earlier assessed under section 172(4). So he held that assessee’s were entitled to refunds of the excess amount paid by them. After refunds the assessee’s claimed interest on excess amount which was turned down by the revenue on the ground that assessment under section 172(4) could​​ not be​​ said to be payment of advance income-tax. What is your opinion ?​​ ​​ 

Question 3 (ID 031) (Non Resident Shipping / air crafts 172, 44B, 44BBA)

X (45 years), a non​​ resident, is engaged in the business of shipping. During the previous year, one of the ships owned by X collects freight as follows:

• On August 6, a sum of Rs. 40 lakh for shipping goods from Cochin Port (it includes demurrage of Rs. 10,000 and handling charges of Rs. 60,000); and

• On January 10, a sum of Rs. 25 lakh for shipping goods from Bombay (it is paid to X in New York).

Besides, X collects Rs. 22,70,000 in India on March 31, for shipping goods from Karachi to California. Barring the cases noted above,​​ X does not have any other income in India. X incurs an expenditure of Rs. 2,40,000 in India (out of which Rs. 65,000 is paid in cash). X has brought forward loss of Rs. 5,000 from a trading business in India which has discontinued 3 years back. Compute the tax liability of X.

Question 4 (ID 032) (Revision ​​ / Home work) (Non Resident Shipping / air crafts 172, 44B, 44BBA)

Discuss the following​​ 

X, a non-resident, operates an aircraft between Singapore and Chennai. He received the following amounts in the course of the business of operation of aircraft during the year.

• Rs. 2 crore in India on account of carriage of passengers from Chennai.

• Rs. 1 crore in India on account of carriage of goods from Chennai.

• Rs. 3 crore in India on account of carriage of passengers from Singapore.

• Rs. 1 crore in Singapore on account of carriage of passengers from Chennai.

The total expenditure incurred by X for the purposes of the business was Rs. 675 crore.

Compute the income of X chargeable to tax in India under the head “Profits and gains of business or profession” for the assessment.

List of Important Question to be glanced for Revision before exam.

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