Computation of Tonnage Income - Section 115VG - Income Tax - Ready Reckoner - Income Tax

Computation of Tonnage Income - Section 115VG Step I : Find out the tonnage of each qualifying ship owned by the shipping company. Step II : Determine the daily tonnage income of each qualifying ship on the basis of such tonnage as per the below table: Qualifying ship having net tonnage Amount of daily Tonnage Income Up to 1,000 Rs.70 for each 100 tons Exceeding 1,000 but not more than 10,000 Rs.700 plus ₹ 53 for each 100 tons exceeding 1,000 tons. Exceeding 10,000 but not more than 25,000. Rs.5,470 plus ₹ 42 for each 100 tons exceeding 10,000 tons. Exceeding 25,000 Rs.11,770 plus ₹ 29 for each 100 tons exceeding 25,000 tons. Step III : Such daily tonnage income of each qualifying ship shall be multiplied by the number of days, the ship is operated by the company. Step IV : Thereafter, tonnage income of each ship shall be aggregated and the aggregated tonnage income of all qualifying ships shall be the profits chargeable under the head Profits and gains from business and profession and prevailing corporate tax rate will be applied to arrive at the tonnage tax. Notes: - For the purpose of this chapter, the tonnage shall mean the tonnage of a ship indicated in the certificate referred to in Section 115VX and includes the deemed tonnage computed in the prescribed manner. However, deemed tonnage shall be the tonnage in respect of an arrangement of purchase of slots, slot charter and an arrangement of sharing of break-bulk vessel. The tonnage shall be rounded off to the nearest multiple of hundred tons and for this purpose any tonnage consisting of kilograms shall be ignored and thereafter if such tonnage is not a multiple of hundred, then, if the last figure in that amount is fifty tons or more, the tonnage shall be increased to the next higher tonnage which is a multiple of hundred and if the last figure is less than fifty tons, the tonnage shall be reduced to the next lower tonnage which is a multiple of hundred; and the tonnage so rounded off shall be the tonnage of the ship for the purposes of this section. Notwithstanding anything contained in any other provisions of this Act, no deduction or set off shall be allowed in computing the tonnage income under this Chapter