Transfer of profits to Tonnage Tax Reserve Account

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..... quired 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 book profit derived from the activities referred to in clauses ( i ) and ( ii ) of sub-section (1) of section 115V-I in each previous year to be utilised in the manner laid down in sub-section (3): Provided that a tonnage tax company m .....

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..... shortfall, if any, shall be added to the amount of the reserves required to be created for the following previous year and such shortfall shall be deemed to be part of the reserve requirement of that following previous year : Provided that to the extent the shortfall in creation of reserves during a particular previous year is carried forward to the following previous year under this sub-sect .....

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..... r for remittance outside India as profits or for the creation of any asset outside India. (4) Where any amount credited to the Tonnage Tax Reserve Account under sub-section (1), ( a ) has been utilised for any purpose other than that referred to in clause ( a ) or clause ( b ) of sub-section (3); or ( b ) has not been utilised for the purpose specified in clause ( a ) of sub-section (3) .....

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..... lause ( b ), in the year immediately following the period of eight years specified in sub-section (3); or ( iii ) in a case referred to in clause ( c ), in the year in which the sale or transfer took place: Provided that the income so taxable under the other provisions of this Act shall be reduced by the proportionate tonnage income charged to tax in the year of creation of such reserves. .....

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..... year following the second consecutive previous year in which the failure to create the reserve under sub-section (1) had occurred. Explanation .- For the purposes of this section, new ship includes a qualifying ship which, before the date of acquisition by the qualifying company was used by any other person, if it was not at any time previous to the date of such acquisition owned by any person .....

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