Method and time of opting for tonnage tax scheme - Section 115VP - Income Tax - Ready Reckoner - Income Tax

Method and time of opting for tonnage tax scheme - Section 115VP Qualifying company to make an application to Joint Commissioner [ Section 115VP(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 prescribed, for such scheme. Time Period for making an application [ Section 115VP(2) ] (a) Application by existing company The application by any existing qualifying company at any time after 30-9-2004, but before 1-1-2005 (hereafter referred to as the initial period) (b) Application by any other company a company incorporated after the initial period or a qualifying company incorporated before the initial period but which becomes a qualifying company for the first time after the initial period, may make an application within three months of the date of its incorporation or the date on which it became a qualifying company, as the case may be. a Unit of an International Financial Services Centre which has availed of deduction under section 80LA may make an application within three months from the date on which such deduction ceases. [Proviso added by FA, 2023 ] Order of approval/refusal to be pass by the Joint Commissioner after scrutinizing the documents and other information [ Section 115VP(3) ] On receipt of an application for option for tonnage tax scheme under section 115VP(1), the Joint Commissioner may call for such information or documents from the company as he thinks necessary in order to satisfy himself about the eligibility of the company and after satisfying himself about such eligibility of the company to make such option for tonnage tax scheme, he shall pass an order in writing approving the option for tonnage tax scheme or shall, if he is not so satisfied, pass an order in writing refusing to approve the option for tonnage tax scheme, and a copy of such order shall be sent to the applicant However no order under clause ( ii ) shall be passed unless the applicant has been given a reasonable opportunity of being heard. Time Period of passing the order of approval/refusal [ section 115VP(4) ] Every order granting or refusing the approval of the option for tonnage tax scheme under clause ( i ) or clause ( ii ), as the case may be, of section 115VP(3) shall be passed before the expiry of one month from the end of the month in which the application was received under section 115VP(1). Effective date of approval [ Section 115VP(5) ] Where an order granting approval is passed under section 115VP(3), the provisions of this Chapter shall apply from the assessment year relevant to the previous year in which the option for tonnage tax scheme is exercised.