Manu's Matsy Nyaya
Taxes need to be just and fair. And "just" also means giving more advantage to the disadvantaged, while having in place a fair and equal opportunity for all. That's the reason, our Constitution has put in place the concept of reservation and subsidy for the disadvantaged.
India has signed DTAA with many foreign countries. The Shipping Lines who are registered and paying taxes in those member countries are not required to pay taxes in India. It works both ways. However, in order to avail this facility in India, the foreign Shipping Line, needs to submit evidence to our Tax authorities and obtain a DIT license every year. However, our Tax Department insists that only those incomes arising out of carrying containers in the company's own vessels or on any listed vessel as per the Common Pool Agreement shall be exempted. Any direct slot buying from another carrier shall disqualify the appellant. However, in practice, the big shipping lines load majority of their containers outside their own vessels and Pool vessels. Majority of the carriers into India are Common carriers and even stand-alone operators, who sell their space to all major carriers. However, as the large carriers have some sorts of Pool Agreements, they submit all such evidences to get their exemption easily. They are big fish. They pay their way through to bring such an unreasonable interpretation of the tax law. The smaller and not-so-big ones, especially the Indian players with multi-country operations are shoved into the tax net. The startups,& the smaller carriers, whose size and scale is not enough to get into such Pool Arrangements, are denied any DIT license. And all of the Indian-origin carriers are small and fit into the latter category. They are small fish. They have to pay taxes in both the countries. If that is enough, they have to deduct a TDS of 20% on all their remittances abroad. The only alternative, is to duck this Draconian Law or perish.
So big fish eats small fish or Matsy Nyaya. Our own home grown industries, who are trying to compete with the big fish in bringing cost and efficiency into carriage of goods to and from the shores of India are meted death blows by our Tax department, while the super big Carriers have a free license to do business in India and loot away without any any native competition. Such unfair and anti-domestic policies need to be urgently reexamined and replaced. They need to be replaced with policies, that encourage smaller and medium players of Indian origin and especially the startups. Or rather be given an advantage over the big fish - as that is fair and true justice.
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Taxes need to be just and fair. And "just" also means giving more advantage to the disadvantaged, while having in place a fair and equal opportunity for all. That's the reason, our Constitution has put in place the concept of reservation and subsidy for the disadvantaged.
India has signed DTAA with many foreign countries. The Shipping Lines who are registered and paying taxes in those member countries are not required to pay taxes in India. It works both ways. However, in order to avail this facility in India, the foreign Shipping Line, needs to submit evidence to our Tax authorities and obtain a DIT license every year. However, our Tax Department insists that only those incomes arising out of carrying containers in the company's own vessels or on any listed vessel as per the Common Pool Agreement shall be exempted. Any direct slot buying from another carrier shall disqualify the appellant. However, in practice, the big shipping lines load majority of their containers outside their own vessels and Pool vessels. Majority of the carriers into India are Common carriers and even stand-alone operators, who sell their space to all major carriers. However, as the large carriers have some sorts of Pool Agreements, they submit all such evidences to get their exemption easily. They are big fish. They pay their way through to bring such an unreasonable interpretation of the tax law. The smaller and not-so-big ones, especially the Indian players with multi-country operations are shoved into the tax net. The startups,& the smaller carriers, whose size and scale is not enough to get into such Pool Arrangements, are denied any DIT license. And all of the Indian-origin carriers are small and fit into the latter category. They are small fish. They have to pay taxes in both the countries. If that is enough, they have to deduct a TDS of 20% on all their remittances abroad. The only alternative, is to duck this Draconian Law or perish.
So big fish eats small fish or Matsy Nyaya. Our own home grown industries, who are trying to compete with the big fish in bringing cost and efficiency into carriage of goods to and from the shores of India are meted death blows by our Tax department, while the super big Carriers have a free license to do business in India and loot away without any any native competition. Such unfair and anti-domestic policies need to be urgently reexamined and replaced. They need to be replaced with policies, that encourage smaller and medium players of Indian origin and especially the startups. Or rather be given an advantage over the big fish - as that is fair and true justice.
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Brgds
Capt Rath (Skype Gtalk MSN : psrath)
Econship
Quicker Simpler Better
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