Special provision for computation of income on presumptive basis in respect of certain business activities of certain non-residents

The provisions of sections 26 to 54, to the extent contrary to this section, shall not apply to the specified business mentioned in column B of the Table in sub-section (2).

The profits and gains of any specified business as mentioned in column B of the Table below, carried on by a specified assessee as mentioned in column C of the said Table during a tax year, shall be computed in the manner specified in column D thereof, and charged to income-tax for the said tax year under the head “Profits and gains of business or profession”. Table Sl No. Specified business Specified Profits and gains of assessee business or profession A B C D 1. Business of Non- 7.5% of (A+B), operation of ships, resident. where,–– other than cruise ships referred to in Serial A = sum on account of number 2. carriage of passenger, livestock, mail or goods shipped at any port in India, whether paid or payable, in or outside India, to the assessee or any other person on his behalf (including demurrage, handling or other similar charges); A B C D B = sum on account of carriage of passenger, livestock, mail or goods shipped at any port outside India, whether received or deemed to be received in India, by the assessee or any other person on his behalf (including demurrage, handling or other similar charges). 2. Business of Non-resident. 20% of (A+B), operation of cruise where,–– ships (subject to A = sum on account of the conditions as carriage of passenger, paid or prescribed). payable to the assessee or any other person on his behalf; B = sum on account of carriage of passenger received or deemed to be received by the assessee or any other person on his behalf. 3. Business of Non-resident. 5% of (A+B), operation of where,–– aircraft. A = sum on account of carriage of passenger, livestock, mail or goods from any place in India, paid or payable (in or outside India) to the assessee or any other person on his behalf; B = sum on account of carriage of passenger, livestock, mail or goods from any place outside India, received or deemed to be received in India, by the assessee or any other person on his behalf. 4. Business of civil Foreign 10% of the amount construction or company. towards such civil erection or testing construction, erection, or commissioning, testing, or commissioning, of plant or paid or payable, to the machinery, in assessee or to any other connection with a person on his behalf, turnkey power whether in or outside India. project, approved by the Central Government. A B C D 5. Business of Non-resident 10% of (A+B), providing services person. where,–– or facilities (including supply A = sum on account of of plant and business of providing services machinery on hire) and facilities in connection for prospecting, with, or supply of plant and extraction or machinery on hire used, or to be production of used, in the prospecting for, or mineral oils. extraction or production of mineral oils in India, paid or payable (in or outside India), to the assessee or any other person on his behalf; B = sum on account of business of providing services and facilities in connection with, or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of mineral oils outside India, received or deemed to be received in India, by the assessee or any other person on his behalf. 6. Business of Non- 25% of (A+B), providing services resident. where,–– or technology in India, for the A = the amount paid or purposes of setting payable to the non-resident up an electronics assessee or to any person on his manufacturing behalf on account of providing facility or in services or technology; connection with B = the amount received or manufacturing or deemed to be received by the producing non-resident assessee or on electronic goods, behalf of non-resident assessee article or thing in on account of providing India to a resident services or technology. company.