Merchant Navy Union to challenge adverse tax judgment

MUMBAI: Bhartiya Navik Sena Union ( BNSU), a merchant navy association, is looking to challenge an income tax department judgment around taxing seafarers or merchant navy personnel in court.

This comes after the Kolkata Income Tax Tribunal in a case ruled that merchant navy personnel are liable to pay income tax in India.

Following the judgment the income tax department has begun slapping notices on merchant navy personnel, asking them to pay taxes on income earned from working on either Indian or foreign vessels.

Until now, merchant navy personnel enjoyed benefits similar to non-resident Indians and did not pay taxes in India.

“The Income Tax department has issued the notices on merchant navy personnel asking them to pay taxes on their income. We will be challenging the tribunal judgment for the betterment of seafarers,” Ajit Yashwanthrao, vice president, BNSU, said in a statement.

ET on August 1 had written that following the judgment, merchant navy personnel may have to pay around 30 per cent taxes on their incomes.

The Kolkata tribunal order came on an appeal filed by Tapas Bandopadhyay against an order issued by the deputy director of income tax in Kolkata.

The tribunal ruled that any income received in India is taxable except in cases where there is a double taxation avoidance agreement (DTAA), which was not the case here.