<p data-path-to-node="5">The <b data-path-to-node="5" data-index-in-node="25">Maritime Association of Shipowners Shipagents and Managers (MANSA)</b> has petitioned the <b data-path-to-node="5" data-index-in-node="111">Central Board of Direct Taxes (CBDT)</b> for immediate intervention regarding mounting operational difficulties in complying with Section 172 of the Income Tax Act, citing critical implementation failures related to Mandatory Permanent Account Number (PAN) and Document Identification Number (DIN) requirements.</p><p data-path-to-node="6">Under Section 172, non-resident shipping lines are subject to a simplified income tax assessment on India-derived revenue, typically settled by the local ship agent before a vessel is granted customs port clearance to depart. The shipping association highlights that recent rigid mandates requiring a structural PAN and DIN linkage have created an administrative bottleneck. Local income tax authorities are reportedly refusing to process or issue statutory tax clearance certificates essential for obtaining the customs 'Port Clearance' (PC) unless these specific digital identifiers are present and linked.</p><p data-path-to-node="7">MANSA contends that forcing non-resident entities into rigid PAN/DIN registration for transient port calls undermines the intended 'simplified' and expedited nature of Section 172, threatening to impose significant detention costs on vessels awaiting administrative processing.</p><h3 data-path-to-node="9">Key Operational Highlights &amp; Policy Impacts</h3><ul data-path-to-node="10"><li><p data-path-to-node="10,0,0"><b data-path-to-node="10,0,0" data-index-in-node="0">Securing Port Clearance and Regulatory Risk:</b> The core issue is the potential for mid-operation vessel detention. Without the tax clearance under Section 172, customs officials cannot issue the final 'Port Clearance,' effectively halting a ship’s departure from Indian ports and triggering massive demurrage and charter hire penalties.</p></li><li><p data-path-to-node="10,1,0"><b data-path-to-node="10,1,0" data-index-in-node="0">Hurdle for Simplified Section 172:</b> Section 172 is specifically designed as a 'simplified' and 'ad-hoc' assessment to facilitate rapid vessel turnarounds. Imposing a requirement for a formal PAN (Permanent Account Number) and DIN (Document Identification Number) typically reserved for long-term Indian business presence on transient non-resident owners or charterers nullifies the expedited nature of the legal framework.</p></li><li><p data-path-to-node="10,2,0"><b data-path-to-node="10,2,0" data-index-in-node="0">PAN/DIN Compliance Impasse:</b> Ship agents, acting on behalf of diverse non-resident owners and charterers, are unable to generate these identifiers instantaneously. This compliance deadlock prevents agents from filing tax returns or making payments, resulting in regulatory lapses and administrative paralysis.</p></li><li><p data-path-to-node="10,3,0"><b data-path-to-node="10,3,0" data-index-in-node="0">Urgent Petition for Alternative Compliance:</b> MANSA is urging the CBDT to simplify the Section 172 process. They seek an alternative verification mechanism, such as utilizing the vessel agent’s PAN or a unique 'Section 172 Identifier,' rather than forcing non-resident entities to obtain formal, non-resident Indian tax identifiers for temporary maritime activities.</p></li><li><p data-path-to-node="10,4,0"><b data-path-to-node="10,4,0" data-index-in-node="0">Maintaining Trade Facilitation:</b> Efficient Section 172 processing is critical for maintaining India's port efficiency and 'Ease of Doing Business' rankings. Prolonged vessel turnarounds caused by tax-related bureaucratic delays risk increasing shipping costs and dampening competitiveness for both import and export trade.</p></li></ul>