4 Shipping Terms -Dead Freight ,Bare boat , Time Charter & Slot Fee for Taxation Purpose Simplified!


Income Tax Act provides special provision for taxation of income of non-resident or its agent involved in business of shipping. While occasional shipping income of a non resident is assessed under section 172 , an option to get assessed under an exclusive provision i.e 44B is also provided. But when one reads these provision , certain terms like shipping freight ,dead freight or bare boat charges or time charges , slot fee come up. These terms , exclusive to shipping industry , are not defined under Income Tax Act , but are relevant to assessment of income of non residents engaged in shipping business.This post is entirely concentrating on the meaning of certain terms which decides the taxation of income from shipping business of non-residents or its agents. These are meaning of

  1. Dead Freight
  2. Bare Boat
  3. Time Charter
  4. Slot Fee
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