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Showing posts with label MUI. Show all posts
Showing posts with label MUI. Show all posts

Wednesday, 18 July 2012

RAPPAHANNOCK shootout - are Indian seafarers target practice now?



http://blogs.timesofindia.indiatimes.com/Diary-of-a-Divorced-Delhi-Male/entry/battleship-potemkin-naval-war-movies-as-propaganda-tools


We were at sea in the "good old days" when we heard stories about how naval ships from the Western countries, well after WW-II was over, would take potshots at fishing fleets from developing countries in the middle of the ocean, for whatever reason, even wagers between people - in a day and age when communication was not all that good.
It is the submission of some of us that a similar arrogance is coming back on the oceans. There are rules for us and there are no rules for them. Are we now target practice for a bunch of cowboys?

Wednesday, 20 June 2012

The case being made to reduce wages for Indian seafarers



Are Indian seafarers pricing themselves out of the market, and if so, what can be done? That was the question put to me and initially, with the accompanying data viewed in purely mathematical terms, it did appear to be the case.

For example, and all figures approximate, in USD and basis contractual wages per month or pro-rata. Indian officers are typically between these two figures.

Newly promoted Master/Chief Engineer: North-West European countries  / 13000 and Far East Developing countries  /  6500

Entry level 3rd Officer / 4th Engineer: North-West European countries / 5300 and Far East Developing countries /  2200

The argument or hypothesis put forward is that Indian officers need to voluntarily start accepting salaries closer to the salaries accepted by officers from the Far Eastern countries if they don't want to see themselve being out-priced from the market. Obviously, this does not take into account flag-state requirements, and applies more to open
register employment opportunities - though even some flag states are now relaxing this when it comes to employing foreign nationals on their ships.

This would be correct if the maritime industry was a simple operational industry, where the financial aspects over-rode everything else, and humans could be increasingly replaced by machines and computers. Or treat the sailor as sub-humans. To some extent, that is the way the industry has evolved over the past 2-3 decades, but there is simply no more elasticity left in the constant battle to reduce head-count on board by every means possible. How much more can the owners and flag states play around with so-called safe manning, before port states start imposing their own conditions, is already being played out.

If anything, as enquiry reports in more than a few accidents have shown lately, fatigue and lack of competence are the two biggest reasons going hand-in-hand while safety and efficiency take a beating. Certificates of competency and time-sheets are one thing, realities are another, and ship-owners as well as operators must realise that the issue is deeper than just salaries or rather the daily-wage kind of contractual numbers.

One solution would be for the same people advocating further reduction in head-counts to spend some time on board real working ships, as pursers, to try and understand the realities involved. And on terms and conditions as applicable to 3rd Officers.

Because. Then only will management, especially financial management, learn that the modern young seafarer, as with any other career professional, is looking for more than just money. There are two other very important parameters involved:- future potential and respect at the workplace. Nothing more needs to be said or written on how both these paramters have gown downhill over the last 2-3 decades.

Not that salaries have kept pace either. Compared with other avenues open to younger people, merchant navy salaries have not kept up. Simple as that.

Speaking with a few youngsters in the Merchant Navy on the subject, one can understand their frustration - managements tend to ignore the fact that their frontline operational staff expect more than just money. Leave alone a reduction in wages, many of them were of the opinion that even doubling of wages without improving working conditions and future potential meant nothing to them.

Which takes me back to the solution - which has to go back to basics. Tthe Indian seafarer was and should still be linked to the Indian flag ships. That is where the solution lies - there will be no dearth of very well qualified people willing to work for lower salaries as long as the other two parameters of respect at the workplace and future potential are met. Sadly, the Indian flag shipowners have defaulted on this responsibility terribly over the last few decades, and this needs to be resolved first.

If, hypothetical if, the Indian shipowners simply matched terms and conditions offered by the Indian Navy to theiir younger officers, then many of the same younger officers see no reason why a 20-year working life could not be something easy to achieve. With all the other benefits that accrue to shipowners able to plan for the future. And more.

The example of the coastal and foreign going Chinese flag fleet can be quoted in this context. The example of how many of us in the '70s and '80s chose to stay on with Indian flag vessels at lower salaries for the same reasons can also be quoted.

By all means, think about reducing salaries to make the Indian seafarer more competitive, but it can not be a stand-alone. It may sound strange, but bench-marking the Indian Navy for this is not such a wild idea - the two services have always been related and till not too long ago, the best who came out of the Training Ships actually went to the Indian Navy.

The rest, the not so best, or the better than most, take your pick, can then certainly work in the open registers.


And there, let market forces decide.

Saturday, 10 March 2012

Is racism the real reason for differing treatment of seafarers?


Why are our seafarers still getting killed on our coast?
March 10, 2012 08:17 AM |
Veeresh Malik

What is happening on the west coast of India lately with the MV Enrica Lexie, in and around Kerala, defies all logical explanation. Except one big one—the crew in this case happens to be European, not third world



Tuesday, 10 January 2012

A Master's views on the DGS Revalidation course . . .


Dear Veeresh,
I did my revalidation for master’s COC at ___________ last 4 times .
The first time I told the Directors- that Capt ____________must be put out to pasture. This ignoramus was so full of ego that he tried to treat us like kindergarten kids.
One of the ship’s business lecturers was Capt ________— old ex-_______ – maybe ??? years old. A good guy BUT totally out of touch with modern day REALITY.

Last 2 times I met the Director ____________ personally and told him not to make this course a FARCE — that __________ must go. I am sure he is still there.
Training is being done on sentiments-- Wish I could run my unforgiving and merciless _______________ carrier tanker on sentiments.
This ego thing-- when you have an international conference of brain surgeons – there is maturity and mutual respect. When we have maritime seminars , just see the way the shore guys act as if they are gold medallists, who scored 100% marks— while the seafarers are the moronic bunch who scored zero percent—and hence banished to sea as divine punishment!!
brgds
_______________

Saturday, 31 December 2011

What I would like MUI to do . . .

Here's a wishlist of what I would like MUI to do for Indian seafarers, can you suggest more, or amendments, improvements, whatever?

# Single articles of agreement for seafarers on Indian flag ships, with the MUI-INSA agreement setting the terms & conditions as well as salary minima, between shipowner and seafarer. (If the seafarer is being paid more than the MUI-INSA agreement, then mention it on the articles.)

# Revive the concept of employment on Indian flag vessels, keeping in mind the new Service tax and TDS regulations.

# Involve MUI in the revised RPS Rules from DGS and from there coordinate it to FOSMA/MASSA and INSA companies of the better variety.

# Restore dignity for all at DGS, MMD, Shipping Master along the lines of model RTOs and offices at airports - both for the people working there as well as the clients, seafarers and others who need to come there.

# Initiate a vessel feedback system from Indian Masters/Mates and Chief Engineers/Engineers of ships visiting Indian ports with some element of confidentiality assured.

# Tighten up the examination system, including video recording of orals and online "no delay" writtens without restrictions on how many seats per centre. (For example, NOIDA/Delhi has only 40 seats vs 100s of candidates)

# Bring Delhi online for engine side endorsements. (Currently Delhi/NOIDA is only deck)

# Cleaning up the whole GMDSS mess.

# Take feedback on and update the syllabus for CoC exams from college lecturers and candidates.

# Work towards courses to be on dual shift per day basis to reduce time at colleges for seafarers on leave.

# Lay down insurance covers and underwrite additional salaries at 3x levels for seafarers who have been kidnapped, hijacked, pirated, held in jail = single salary to family, and double salary head in escrow till end of episode, plus post episode trauma care and support, on a scale that rises with duration.

# Instal a system of ship / owner / RPS Agent / other feedback from MUI members and share this open domain.

# Work towards more sensible safe manning levels for Indian flag, foreign flag visiting India and foreign flag with Indians onboard. Teach seafarers how to make cogent work-time studies towards presentation skills for improving quality of life onboard.

# Bring MUI into direct interaction with Customs, Immigration, Health and other agencies which interact with Indian seafarers in India.

# Increase death and disability compensation to minimum 20 years or balance of life potential employment levels.

+++

Appreciate more please?

Thursday, 22 December 2011

Proposed speech here in Delhi


It does seem as though some people are beginning to agree with what I write here, especially on the issue of maritime piracy, criminalisation of the seafarer, human relations in the shipping industry and finally, the role of the National maritime authorities. As a result of which, I have been asked to speak at a rather high-level meeting in Delhi on the subject, across different departments,so am sharing the thoughts I want to get across with readers here, first.

Bullet points, which will be expanded, keeping things simple without power points or charts. Please let me know what you think and how I can improve it? This will also help me develop a longer article for the print and net media, and can not be done without help from active seafarers and others ashore.

# As seafarers, it has been made clear to us as adults that this is a risky profession, and we enter it with our eyes wide open. Ships are never going to be zero-defect, and life is not as easy as it seems, with money not being the main motivator any more since you can make much more ashore.

# The training used to be and has to be tough, not just physically, but also mentally. The need to be able to segregate everything else and concentrate dis-passionately on life while afloat has to be acquired, so that risks can be analysed, and acted upon without emotions.

# Piracy at sea is not new, nor is it that romantic feature from movies, nor the big dark guy with a scar and an Islamic head-dress. It has been more in the news now because the kidnap and hold for ransom aspect has spiralled because of Somalia.

# Where piracy resulted in material losses onboard, it never made news, in fact civil authorities will deny it and call it "theft" or they will fudge the records, both of which are nothing new or to be surprised about.

# Where piracy resulted in quick theft of ship as well as loss of life, like in the days of the LTTE around the Bay of Bengal or still ongoing in South China Sea and environs, then also it did not make news because in the book of accounts of shipping companies it became a one-line item under insurance.

# Modern day piracy is well orchestraed by the suits and boots in financial capitals. The targeted hijack of the FAIRCHEM BOGEY in August 2011 as an example.The evidence pointing to coordinated moves from bankers, insurance companies, security companies, even shipowners looking for write-offs. In addition to piracy due to disputes, which is almost legit in some parts of the world, where the ship and crew are held, arrested, kept hostage, sometimes jailed.

# The personal involvement, late Capt. RK Menon, Capt. Prem Kumar, Chirag Bahri, and others who are still stuck and can not be named. The trauma for families, the post release issues. The non payment of dues.  ASPHALT VENTURE owners now willing to pay salaries anymore.

# The invisible shipowner, the pliant ship-manager, the even more pliant DGS, unions, FOC "business" consulates, the tax haven connection, historical linkages of some dominant shipowners themselves with piracy and opium, arms, ammo and money laundering, and the fall guys therein - the seafarers.

# So, seafarer is in for risk, nothing new. But it is the reward or the security which has gone bad over the years. Today, the criminalised or pirated seafarer is ignored. What is new there? What are the solutions?

# Triple wages while in captivity for ANY reason. One to be  paid to the family and two to be placed in escrow till end of episode. Full medical expenses for family and seafarer on return. Kidnap and ransom insurance as is normal for expats in dangerous locations from specialist companies.

# Political solutions, UN, American interests, Diego Garcia, Chinese in Seychelles, Indians Lakshwadeep, Iran issues, larger political picture - all fine, but back to the seafarer and simple solutions therein, instead of just a BMP-4.

++++


Wednesday, 21 December 2011

Wonder if any of our Nautical Advisors, Surveyors, Shipping Masters, would go on board a ship through the Gulf of Aden . .


http://ibnlive.in.com/news/iaf-chief-flies-su30mki-to-assure-it-is-safe/213941-3.html

Pune: A week after a Sukhoi-30 MKI fighter plane crashed leading to grounding of the fleet, IAF chief NAK Browne on Wednesday took an hour-long sortie in the aircraft in Pune, in an exercise aimed at restoring the confidence of pilots.
The Air Chief Marshal took off from Lohegaon air base and was accompanied by Wing Commander Anurag Sharma, Commanding Officer of the SU-30 MKI squadron, based in Pune.
Addressing the air-warriors after the sortie, Browne said, "I wanted to be here to not only fly the SU-30 MKI but also to assure you that our SU-30 fleet is in good and capable hands."

IAF Chief flies Sukhoi-30 MKI to assure it is safe


IAF had temporarily grounded the fleet of nearly 120 Russian-made Sukhois to carry out checks after an aircraft that had taken off from Lohegaon base crashed on December 13.
"The Chief has been restoring the confidence of pilots and all the air-warriors in these fighter aircraft. He personally wanted to ensure that the Sukhois are safe," an IAF spokesperson said.
Browne is on a working visit to Lohegaon base, which he had commanded as the Air Officer Commanding (AOC), from 2001 to 2003.
Stressing that the force personnel have been doing an "excellent job", the air chief said the momentum of building up the new SU-30 Squadrons needs to be maintained.
"Our people should remain our highest priority because it is then, that a cohesive team translates itself in to a success story," he said.
Officials also said that the IAF chief performed several different manouvers on the plane.
"The sortie of course had a profile and the aircraft performed several tasks during the flight," they said.
The report of the Court of Inquiry (CoI), which was ordered after the December 13 crash, is yet to come but the Sukhois resumed flying duties from Monday. Russian experts have also been called in to assist in the probe.
IAF has also deployed the Sukhoi-30 MKIs in North Eastern region as well and Browne was touring one of these bases when the crash took place.
Sukhois have been serving in the IAF for over a decade and has registered a sound safety record with only three crashes so far.
Two of these crashes took place in 1999 owing to the fly-by-wire control system, which were repaired by the force.

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I wonder what our Deck side Nautical Advisor, Engine side Chief Surveyor and for that matter the Radio Chief at DG Shipping would do if they had to sail onboard a ship in the Arabian Sea piracy affected areas?

Note what the Air Chief said:- ""Our people should remain our highest priority because it is then, that a cohesive team translates itself in to a success story,"


Have any of us in all our lives EVER heard of any of our Nautical Advisors, Engine Surveyors, Radio Surveyors, Ship-management managers, Shipowners even SAY ANYTHING remotely like this, leave alone DO anything about this.


A few steps away from the office of the DG Shipping is the office of the Shipping Master and MMD. A few days ago I received feedback of what was going on there, as well as a video clip of the "activities" therein, and am currently taking legal opinion and permissions on posting the video online because the building also houses some Defence offices and there is the issue of the identity of the person involved. That should take a few days, because this is only for safety's sake, and the issue of prohibiting photography at Government Offices or premises of Public Authorities was taken care of me a few years ago in context with photography at airports and in airplanes - the DGCA subsequently issued a circular saying it was permitted here:- http://dgca.nic.in/manuals/Procedure%20Manual%20for%20Regulation%20and%20Information%20Directorate.pdf

Take a look at Chapter 11.

Why is taking photographs of illegal activities on ships and in shipping offices so important?

Well, from the seafarer's point of view, simple:- take a look at how the crew members (Master and 2nd Officer) of the RENA are looking forward to 7 years in jail for "altering records".

http://www.upi.com/Business_News/Energy-Resources/2011/12/21/Rena-crew-faces-new-charges-after-spill/UPI-33011324473801/

Which Merchant seafarer has not altered records at some stage or the other, and will be backed up by the unknown owner for doing so?

All parts of a larger puzzle - and the solution lies at the DG Shipping office's doorsteps. They HAVE to start walking the talk on caring for their seafarers first - just like the IAF Chief did.

Technocrats are of no value after some time, if all they do is warm chairs, and prefer to be surrounded by sycophants.

++++

Monday, 19 December 2011

Brilliant hard-hitting interview of DG Shipping Dr. SB Agnihotri in latest SAARC Journal of Transport


Full interview shall be posted soon. Interim, excerpts:-

"The Directorate has immense scope for corrupt individuals to thrive. The age-old practices, rigid rules and regulations provide enough fodder for manipulation. The MMD, a major department under the Directorate, is known for over regulation, micro control and unfair practices."

From the day I was a cadet on the TS RAJENDRA, I was exposed to blatant corruption in the system, and all was kept quiet under a sort of "omerta" (Mafia code of Silence) - whether it was the pre-joining classes held by "HorsePiss" the Chief Steward's sister which guaranteed admissions, the vouchers signed for recreation of cadets which were used for Plaan's parties, the lousy food we got, the terrible sanitation, how we were taught to fudge records for LSA, FFA and Medical as a part of our training, and all the rest that went with it.

When we got down for our "tickets", we knew where to go for "sets", how to find out which "set" was going to come, how to fiddle the writtens, how to set-up orals with certain examiners (I sailed with one of them after that, and he would regale us with tales of how much for what and by whom . . .)

Moving on to chartering, forwarding, and more, and then the whole thing of dealing with the offices of the DGS and MMD and more . . . what, after all, does a welfare officer do? How do you trust a National Association of Shipowners where most of their fleet is flagged out?

All this, and more, but wait for the full interview. Or subscribe to the magazine . . . .

http://www.saarcjt.com/home




Thursday, 15 December 2011

Fatigue at Sea - a Master's point of view



In response to the earlier article on the subject, which can be found here:-
http://matescabin.blogspot.com/2010/11/fatigue-at-sea-lllloooong-post.html


The Master in this case is in his 50s, owns and operates family as well as own businesses ashore INCLUDING a software company, is extremely competent and known as the best SAILING Master in the company he works in on gas carriers, is thoroughly computer literate, and comes out to sea because he enjoys it, always did.


When this man, at such an early age, wants to hang up his boots in disgust now, even though he is absolutely fit, one wonders - what's really happening out there on ships?


Here are his words, in context with my previous article on the subject:-


+++


With reference to the essay on fatigue by Veeresh Malik:-


All above factors are inherent. Only counter measure has been stipulation of rest & work (R/W) hour duration by  (STCW). This is only a monitoring mode and does not address the root cause of fatigue. Also, be frank, this record of R/W is easily fudged or maintained to satisfy the monitors. There are multiple electronic and satellite based ways to keep track of this if required - even taxi and bus drivers now utilise these.


To attack, this word used specifically because it is killing the industry, the root cause:-


A) Safe manning:- This certificate is taken by owners and operators in collusion with the authorities as the only requirement to meet statutory manning needs. Once issued, it is seldom, if ever, reviewed by the flag state, and hardly ever by the port state, which eventually is the ultimate sufferer in case of an episode or damage.

1) This certificate is issued on basis of a ship being new and all systems and automation being in perfect operation. It does not consider the obvious effects of the age of the vessel where by ageing the original designed systems have degenerated, additional workloads due to excessive maintainance becomes a fact of life, and increase in excessive breakdown maintainance makes for massive issues which cannot even be described since often they involve the "chewing gum and baling wire" kind of "jugaad".

2) This certificate does not consider trading patterns and port turnaround times. By rights, a safe manning certificate should take this into account for different trade patterns, just like load lines. As a matter of fact, one wonders what Plimsoll's fate would have been if he had been around today, probably not survived the shipowner's lobbies! 

3) Workloads increase in adverse weather conditions like storms, ice navigation, restricted area navigation, STS operations etc. This has become even worse with climate change. Here again, what are the realities are well known, but where are the solutions that take these into account?

4) Manning level is maintained and certified at bare minimum for owners to save manning cost. That is a known fact.  When owners talk about safety margin in every aspect, then why can't the required safe manning also be increased to take this consideration to maintain a little higher level of manning? What, after all, are we talking about, 3-5 more people per ship?



Leaving this judgement to ship-managers and ship's staff (who are under the mercy of owners) surely leads to operating a vessel under manned for intended voyages. Fudging of work and rest records is then a natural follow-through to satisfy the monitors (PSC, FSIS, Class etcetc.)

In a scenario where a master opines that:-



(1) The vessel though meeting safe manning requirements of certificate is under manned for the intended voyage and delays voyage to meet requirement, (2) And then delays sailing due crew not sufficiently rested . . . then who will stand behind the Master's decision when it is in conflict with owners interest, rather ensure his continued employment? This also can be extended to a crew member who refuses to work beyond the rest work hour requirement.

SOLUTIONS

*1. Raising safe manning levels as safety margin basis age, condition, voyage of vessel as well as data gathered by automatic means. If retro-fitting of lifeboat capacity and accommodation is not possible, then conditions of class to apply.
*2. Immunity to Master who excercises his overriding authourity in meeting rest work hour periods requirement for Indian flag vessels as well as foreign flag operating under Indian DGS RPS Regulations.

*3. Penalty on owner or operators for flouting work rest hour periods. waiver or additional loading of insurance cover in above cases.
*4. Provision by regulators to receive formal as well as anonymous complaints about overwork on ships.

*5. Taking this forward to vessels calling Indian ports, as is increasingly happening in developed countries also.


B) Reduce factors increasing workloads:-

The industry seems to be believe only in inspection , monitoring n data generation as means of ensuring safety which in turn has increased workloads and information overloads. This in itself is self cancelling. To give an example:-  when a tanker/gas carrier calls port, these are the least level of activities:-

1. Customs, Immigration, Health  formalities. even today in times of computers and paperless technologies at least 1 ream and more is wasted generating papers required and equal amount of time (Most companies have passed on this load to Master / Other officers after making radio officer redundant after the introduction of GMDSS)

2. Port safety inspection

3. PSC or FSI, Coast Guard Inspection

4. Internal or external audit

5. Vetting/SIRE inspection. (On average, owners require to maintain 3 valid vettings (validity 6 months) some maintain more than six) no two SIRE inspection or 2,3,4 can be concurrent this inspection.

6. Company shore staff, Inspection, General Inspection, etc most companies have not less  than once every 6 month.

7. Class Surveys.

8. Various extensive other logistic activities like store, crew change,customs rummaging , repairs, etc etc.




All this takes places concurrent to critical cargo operation where most staff is keeping six on six off watches. Ships staff is over stressed and overworked prior arrival, in port preparing and undergoing these activities. (I challenge any one to meet R/W norms in above scenario.)


So, fact remains, vessels enter and vessels sail out with crew fatigue.



Earlier ports calls were rejuvenating.  By a way that seafarers could step ashore. have a change of food, atmosphere etc. Today we dread coming to port, and that is the simple truth, even if we get shore-leave we are treated as not just easy prey but also as criminals.

C) Information overload:-



ISM has added additional burden of paper work at sea. Number of checklists, procedures, records are being generated. Who ever says that ISM does not mean excess paper work is being very economical with the truth. At every audit a new checklist and a new procedure is added without evaluating its neccesity. There is no questioning or enquiry to audit observations. Checklist content has swelled up beyond practicality or rationale. Common seamanship practices have been lost and have become only items of checklist.


If a duty officer has to really comply to adhere and fill these up sincerely, she or he wont have time to look out of bridge front. 90% of checklists are filled up post operation to satisfy the auditors. If that is to be the case, then the office may as well send trainee managers to sail after doing basic STCW and get short-term CDC as purser, so that simultaneously they understand what life on the ships they may manage is really about.


New generation of quality managers ashore with minimal or no practical experience at sea are adding more and more to this garbage. Same people will ring-up to find out what time-zone the ship or port is in, what is the distance between ports or even simple questions to which answers are there in their own computers or files or books behind their tables.


And then there is the overload due to paperwork. To give an example with operational SVDR, ECDIS,e/r dataloger, digital echosounder with 30 days memory, we still maintain manual sounding log, gps log, e/rm movements etcetcetc. Even bus conductors where still left, or drivers, have better equipment, often hand-held. These documents are required as documentry evidence that officer is monitoring positions, soundings, engine movements, weather, everything. Additionaly we have new checklists as coastal navigation, CL tss, watch t/o checklist, ocean passage checklist . . . passage plan is written as thesis copy-pasted often without understanding. Important info is buried under this garbage. In open sea, middle of Pacific you have wheel over position marked and written in passage plan for 15 degrees course alteration.

Do these not contribute to fatigue at sea?



So, will somebody come forward to audit this information overload? And not just somebody who has been ashore forever. We require comptent Masters and Chief Engineers, not just those with Certificates of Competency, with recent seagoing experience (atleast 12 months in the last 5 years) to  trim this mess created by novices becoming quality manager by virtue of being good with Excell or Word and having done a 100% passing rate auditors course on time-pass basis.

D) LACK OF RECREATIONAL FACILITIES ONBOARD:-

There is no regulation to ensure recreation for seafarers on board. How many ships have a gymnasium onboard? A laser projector coasts peanuts now, but how many ships have a good auditorium for the complement? How many ships are fitted with omni directional tv dish antenna? How many owners give free access to emails, or have internet onboard? if at all given what are address and size limitations?

New ships are being launched with lesser and lesser amineties. this lack of recreational facility adds to fatigue, and is amongst the most important because the ship is the seafarers work place as well as home.

e) Alcohol

I have not yet seen any concrete data as to accidents related to alcohol abuse at sea. We
hear about stray incidences like EXXON VALDEZ, where Master though having claimed  to be consuming beer was not actually conning the ship at the time of the grounding. He was in the radio room, communicating with charterers and owners. 



Alcohol world over is considered to be a validated social medium. Not being under influence of alcohol when taking a responsible job is understandable. But why he should he be deprived of it when he has leisure time? It is uderstandable for pilots who maximum remain in the air for 12 hours. Offshore rig staff work on 15 days on 15 days off. A seafarern on an average today sails for 6 continuous months. Depriving him of this relief as leisure is adding to the fatigue
levels.



This has entirely destroyed social life onboard. Those who have to drink will manage to do so, in secret and alone, and that is worse. There use to be exchange of jokes, light moments and healthy interaction in onboard bars. It used to be a place to share happiness and sorrow. 


Today  we see grim faces only in alleyways, with no social contacts with fellow shipmates.

Depriving seamen of alcohol has been a major contributing factor to fatigue at sea. There can be norms for controliing abuse but to enforce 0 alcohol ploicy is not right. Surprisingly, no seafarer organisation has objected to this practice of 0 alcohol even at the cocktail parties thrown after discussing these issues at the many seminars on the subject.



+++


Finally, fatigue is one part , but creating unbearable conditions for seafarers on ship is the larger one. They both go hand in hand. This is dissuading good talent to come out to sea. The quality
of youth coming out to sea is falling. In 70's there used to be competition and only cream got to see sea. Today we are getting the residue. Worst to note is the pride of being a seamen is being lost. 


+++

Saturday, 10 December 2011

What's your income tax and service tax status as an Indian seafarer?

Before you read further and before I proceed further, it is important to point out that this is by way of my understanding of a very complex subject drawn basis my research, and is in no way supposed to be an advisory or comment or guidance. PLEASE do consult your own tax advisor under all circumstances. I am not a professional tax person and this does not claim to be anything other than my views, issued without guarantee. This was the fine print.


+++


As a seafarer, when was the last time you looked closely at the TDS (Tax Deducted at Source) Certificate given to you by the shipowner, agent or shipmanagement company> Broadly, this could have been:-


# A Form 16 - which makes you, in aspects, an "employee" earning an "income" from the company or entity issuing you the Form 16. As per a variety of laws, rules and more, the said employer MUST also adhere to issues like leave wages, Employee Provident Fund Organisation (EPFO) adherences, Articles of Agreement while onboard ship if applicable, the MUI or IMB or similar agreement on perquisites, Income Tax Act and the various aspects thereof. No need, however, of worrying about Service Tax here - as of now, and to my best understanding, when working on Indian flag ships.


For those claining tax exemption on NRI status, and having no Form 16 or 16A, this may be helpful too, towards a better understanding of Section 5(2) and related.


http://taxworry.com/is-salary-received-in-nre-account-in-india-for-services-rendered-outside-india-by-a-non-resident-taxable-in-india/


# A Form 16A - which makes you, for this purpose, a recipient of either a "fees for professional or technical services" or "payments to contractors and sub- contractors". And here, you are most increasingly over the last few years, going to be liable for charging service tax to the company that made these payments to you.


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So, what's Service Tax in India all about, then?


Here are the FAQs on service tax:-


http://www.servicetax.gov.in/faq-29sept11.pdf


Q:- "Who is liable to pay service tax?
Ans:- Normally, the "person‟ who provides the taxable service on receipt of service charges is responsible for paying the Service Tax to the Government (Sec.68 (1) of the Act). However, in the following situations, the receiver of the Services is responsible for the payment of Service tax : (1) Where taxable services are provided by foreign service providers with no establishment in India , the recipient of such services in India is liable to pay Service Tax.


Q:- Are seafarers exempted?
Ans:- NO.


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Now, what is the shipping industry in India, doing about this?


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As far as the Indian National Ship Owners Association (INSA) is concerned, this judgement pertaining to Service Tax referring to them may be of interest, and please note, obviously service tax will apply to resident Indians also.


http://taxworry.com/is-salary-received-in-nre-account-in-india-for-services-rendered-outside-india-by-a-non-resident-taxable-in-india/


http://www.servicetax.gov.in/st-cirmainpg.htm


(quote) 


""Sub: Applicability of service tax on taxable services provided by a non-resident or a person located outside India to a recipient in India-reg.


Kind attention is invited to instruction F No. 275/7/2010-CX8A, dated 30.6.2010, wherein the Board had communicated its view that services tax on a taxable service received in India, when provided by a non-resident/person located outside India, would be applicable on reverse charge basis with effect from 1.1.2005, and that the ratio of judgement in M/s Indian National Shipowners Association (INSA) case [2009 (13) STR 235 (Bom)] would not apply to such cases. Further, direction was issued to field formations to defend the levy of service tax on such services for the period on or after 1.1.2005, as post INSA judgment, it has been held by the High Courts/Tribunal in a large number of cases, applying ratio thereof, that service tax on such services is leviable only w.e.f. 18.4.2006. However, the appeals filed by the department before the Hon’ble Supreme Court, for defending the levy of service tax on such services w.e.f. 1.1.2005, have been dismissed recently (subsequent to the issuance of said instruction dated 30.6.2010) in the following cases.






(i) SLP (C) No. 29539 of 2010 in CCE Vs Bhandari Hosiery Exports Ltd


(ii) SLP (C)No. 18160 of 2010 in CST Vs Unitech Ltd


(iii) SLP (C) No. 34208/09 of 2010 in UOI Vs S R Batliboi & Co.


(iv) SLP (C)No. 328/332 of 2011 in UOI Vs Ernst & Young


(v) SLP (C) No. 25687-25688/2011 in CCE Vs Needle Industries


(vi) SLP (C) No. 25689-25690/2011 in UOI Vs SKM Engg Products






Further, Review Petition No. 1686 of 2011 filed in the case of Bhandari Hosiery has also been dismissed by the Hon’ble Supreme Court vide order dated 18/8/2011.






2. In view of the aforementioned judgments of the Hon’ble Supreme Court, the service tax liability on any taxable service provided by a non resident or a person located outside India, to a recipient in India, would arise w.e.f. 18.4.2006, i.e., the date of enactment of section 66A of the Finance Act, 1994. The Board has accepted this position. Accordingly, the instruction F No. 275/7/2010-CX8A, dated 30.6.2010 stands rescinded.






3. Appropriate action may please be taken accordingly in the pending disputes.


Yours faithfully,










(G. D. Lohani)


Director (Legal)


Copy for information to:


(i) Member (Budget)/Member (ST)


(ii) Joint Secretary (TRU-II)/Commissioner (ST)-CBEC"" 


(unquote)


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Please consult your rax advisor and PLEASE get opinions in writing. If your ship-owner company or ship-manager company or any of the multiple via medias in between say something else, then please take it in writing too.


AND please note:- dual "agreements" of the sort that are being used on Indian ships are just adding to your liabilities. Please be careful about those, also.


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