Income-tax (Eighth Amendment) Rules, 2005 - 120/2005 - Income Tax

Income-tax (Eighth Amendment) Rules, 2005 Notification No. 120/2005, dated 29-3-2005 In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely: 1. (1) These rules may be called the Income-tax (Eighth Amendment) Rules, 2005. (2) They shall come into force on the 1st day of April, 2005. 2. In the Income-tax Rules, 1962 ( a ) in Part II, in sub-part G, after rule 11P, the following rules shall be inserted, namely: 11Q. Computation of deemed tonnage - (1) For the purpose of the Explanation to sub-section (4) of section 115VG, deemed tonnage in respect of an arrangement of purchase of slots and slot charter shall be computed (illustrative formula given in Note 3 appearing after the corresponding Form No. 66) on the following basis : 2.5 TEU = 1 Net Tonnage (1 NT) where TEU is Twenty foot Equivalent Unit (Container of this size) (2) Computation of deemed tonnage (illustrative formula given in Note 4 appearing after the corresponding Form No. 66) in respect of an arrangement of sharing of break-bulk vessel shall be made on the following basis : ( i ) in case where cargo is restricted by volume : 19 cubic meter (cbm) = 1 net tonnage (1 NT); and ( ii ) in case where Cargo is restricted by weight 14 metric tons = 1 net tonnage (1 NT) 11R. Incidental activities for purposes of relevant shipping income - The incidental activities (details given in Note 5 appearing after the corresponding Form No. 66) referred to in sub-section (5) of section 115VI shall be the following, namely : ( i ) maritime consultancy charges; ( ii ) income from loading or unloading of cargo; ( iii ) ship management fees or remuneration received for managed vessels; and ( iv ) maritime education or recruitment fees. 11S. Computation of average of net tonnage for charter-in of tonnage - The limit for charter-in of tonnage of the qualifying ships referred to in section 115VV (to be worked out according to the illustration explained in Note 6 appearing after the corresponding Form No. 66) during any previous year shall be computed by dividing the total number of chartered-in ton days by the total number of ton days operated by the company. 11T. Form of report of an accountant under clause (ii) of section 115VW - The report of audit of accounts of a qualified company which is required to be furnished under clause ( ii ) of section 115VW shall be in Form No. 66. ( b ) in Appendix II upto Form No. 65, the following form shall be inserted, namely : FORM NO. 66 [F. No. 142/31/2004-TPL]