Maintenance and audit of accounts An option for tonnage tax scheme by a tonnage tax company shall not have effect in relation to a previous year unless such company—   (i) maintains separate books of account in respect of the business of operating qualifying ships; and  (ii) furnishes, before the specified date referred to in section 44AB, […]

Limit for charter in of tonnage (1) In the case of every company which has opted for tonnage tax scheme, not more than forty-nine per cent of the net tonnage of the qualifying ships operated by it during any previous year shall be chartered in. (2) The proportion of net tonnage referred to in sub-section

Minimum training requirement for tonnage tax company (1) A tonnage tax company, after its option has been approved under sub-section (3) of section 115VP, shall comply with the minimum training requirement in respect of trainee officers in accordance with the guidelines framed by the Director-General of Shipping and notified in the Official Gazette by the Central

Transfer of profits to Tonnage Tax Reserve Account (1) A tonnage tax company shall, subject to and in accordance with the provisions of this section, be required to credit to a reserve account (hereafter in this section referred to as the Tonnage Tax Reserve Account) an amount not less than twenty per cent of the

Prohibition to opt for tonnage tax scheme in certain cases A qualifying company, which, on its own, opts out of the tonnage tax scheme or makes a default in complying with the provisions of section 115VT or section 115VU or section 115VV or whose option has been excluded from tonnage tax scheme in pursuance of an order made under sub-section (1)

Renewal of tonnage tax scheme (1) An option for tonnage tax scheme approved under sub-section (3) of section 115VP may be renewed within one year from the end of the previous year in which the option ceases to have effect. (2) The provisions of sections 115VP and 115VQ shall apply in relation to a renewal of the option for tonnage tax

Period for which tonnage tax option to remain in force (1) An option for tonnage tax scheme, after it has been approved under sub-section (3) of section 115VP, shall remain in force for a period of ten years from the date on which such option has been exercised and shall be taken into account from the

Method and time of opting for tonnage tax scheme (1) A qualifying company may opt for the tonnage tax scheme by making an application to the Joint Commissioner having jurisdiction over the company in the form and manner as may be prescribed18, for such scheme. (2) The application under sub-section (1) may be made by

Exclusion from provisions of section 115JB. The book profit or loss derived from the activities of a tonnage tax company, referred to in sub-section (1) of section 115V-I, shall be excluded from the book profit of the company for the purposes of section 115JB. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing

Chargeable gains from transfer of tonnage tax assets Any profits or gains arising from the transfer of a capital asset being an asset forming part of the block of qualifying assets shall be chargeable to income-tax in accordance with the provisions of section 45, read with section 50, and the capital gains so arising shall be computed