9911796707
TMI BlogCOMPUTATION OF PROFITS OF BUSINESS OF OPERATING A QUALIFYING SHIPX X X X Extracts X X X X X X X X Extracts X X X X ..... le in respect of the business of operating a qualifying ship, for the financial year immediately preceding the relevant financial year. 2. The tonnage income of the financial year in respect of each qualifying ship shall be the daily tonnage income of the ship multiplied by the number of days during which the ship is operated by the company as a qualifying ship. 3. The daily tonnage income of a qualifying ship having tonnage referred to in column (1) of the Table given below shall be the amount specified in the corresponding entry in column (2) of the said Table: TABLE Serial Number Qualifying ship having net tonnage Amount of daily tonnage income (1) (2) (3) 1. up to 1,000 tons Rs. 46 for each 100 tons 2. exceeding 1,000 tons but not more ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of the predecessor for— (a) the financial year immediately preceding the financial year in which the business reorganisation has taken place if the reorganisation is on the first day of the financial year; and (b) the period beginning with the first day of the financial year and ending on the day immediately preceding the date of business reorganisation, in any other case. 9. A company shall continue to be regarded as an operator of a qualifying ship even in the case of temporary cessation of operation of the ship. 10. A company shall not be regarded as the operator in respect of a ship if the ship has been chartered out by it on bareboat charter-cum-demise terms. 11. A ship shall not be considered as qualifying ship if it temporarily ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re these are transferred between the business of operating a qualifying ship and any other business carried on by a qualifying shipping company; (g) determination of arm's length price of the business transactions if the arrangement of transactions results in abuse of the tonnage income scheme. 15. In this Schedule, unless the context otherwise requires,— (a) "bareboat charter" means hiring of a ship for a stipulated period on terms which give the charterer possession and control of the ship, including the right to appoint the master and crew; (b) "bareboat charter-cum-demise" means a bareboat charter where the ownership of the ship is intended to be transferred after a specified period to the company to whom it has been chartered; (c) "bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ualifying ship" means a ship, which fulfils the following conditions, namely:— (i) it is a seagoing ship or vessel of fifteen net tonnage or more; (ii) it is a ship registered or licensed under, or for the purposes of the Merchant Shipping Act, 1958; (iii) a certificate indicating the net tonnage of the ship has been issued under, or for the purposes of, the Merchant Shipping Act, 1958 and is in force; (iv) it is owned or chartered in by the qualifying shipping company wholly, or partly in an arrangement such as slot charter, space charter, or joint charter; and (v) the ship is not— (A) a seagoing ship or vessel if the main purpose for which it is used is the provision of goods or services of a kind normally provided on land; (B) a fishing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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