(1) Notwithstanding anything contained in this Act, where a non-resident, as owner or charterer, hereinafter referred to in this section as principal, carries on the business of shipping, subject to the provisions of this section tax will be levied and collected.

(2) Before a ship leaves any port in Bangladesh, the master of the ship shall prepare a return containing the following particulars and submit it to the Deputy Commissioner of Taxes, namely:-

(a) the amount of money paid or payable to the principal or any other person on his behalf within or outside Bangladesh for the carriage of passengers, cattle, mail or goods on board since the last arrival of the ship at the port; and

(a) the amount of money received, or deemed to be received, within Bangladesh by the principal or by any other person on his behalf for the carriage of passengers, cattle, mail or goods on board the ship at any port outside Bangladesh.

(3) The Deputy Commissioner of Taxes shall, on receipt of the return, determine the sum of money referred to in sub-section (2), and for that purpose may call for such particulars, accounts or documents as he may consider necessary, and the said sum of money shall be considered as income in Bangladesh by the principle which shall be taxable under the head ‘Income from business’ under this Act and shall be levied at the rate of 8% (eight percent) on such income.

(4) Where the Deputy Commissioner of Taxes is satisfied that it is not possible for the master or principal of the ship to file the return required under sub-section (2) before the ship leaves port, and for that purpose the principal may file the return and pay the tax on his behalf through some other person, satisfactory action has been taken, in which case the return is filed within 30 (thirty) days after the ship leaves the port, the Deputy Commissioner of Taxes may, subject to compliance with the provisions of sub-section (2), deem the return to have been filed through a person authorized by the principal:

Provided that in case any charge referred to in sub-section (8) arises after the lapse of 30 (thirty) days, the other person referred to in this subsection shall within 30 (thirty) days after the end of the month in which the said charge arises, within days to file a supplementary return for the said charge and pay the tax payable thereon.

(5) No ship shall be granted a port clearance until the Commissioner of Customs or any officer duly authorized for the purpose is satisfied that the tax payable under sub-section (3) has been duly paid or satisfactory arrangements have been made for payment..

(6) Nothing in this Act shall be construed so as to allow any expenditure against the aggregate amount of receipts determined under sub-section (3).

(7) The tax paid under this section shall be deemed to be the final tax liability of the taxpayer under this Act and the taxpayer shall neither be required to file a return of total income under section 166, nor shall he claim any refund or adjustment of tax on the basis of such return.

(8) For the purposes of this section, the amount referred to in subsection (2) shall include any amount paid or payable as demurrage charge or handling charge or any other amount of similar nature.