9911796707
TMI BlogCertain conditions for applicability of tonnage tax scheme.X X X X Extracts X X X X X X X X Extracts X X X X ..... ived from the activities referred to in section 228(1)(a) and (b). (3) Where the company has-- (a) book profit from the business of operating qualifying ships; and (b) book loss from any other sources, and consequently, the company is not in a position to create the full or any part of the reserves under sub-section (1), the company shall create the reserves to the extent possible in that tax year and the shortfall, if any, shall be added to the reserves required to be created for the following tax year and such shortfall shall be deemed to be part of the reserve requirement of that following tax year. (4) For the purposes of sub-section (3), to the extent the shortfall in creation of reserves during a particular tax year is carried ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e company to any person at any time before the expiry of three years from the end of the tax year in which it was acquired, an amount which bears the same proportion to the total relevant shipping income of the year in which such reserve was created, as the amount out of such reserve so utilised or not utilised bears to the total reserve created during that year under sub-section (1) shall be taxable under the other provisions of this Act- (i) in a case referred to in clause (a), in the year in which the amount was so utilised; or (ii) in a case referred to in clause (b), in the year immediately following eight years specified in sub-section (6); or (iii) in a case referred to in clause (c), in the year in which the sale or transfer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 231(4), shall comply with the minimum training requirement in respect of trainee officers as per the guidelines made by the Director-General of Shipping and notified by the Central Government. (13) The tonnage tax company shall be required to furnish a copy of the certificate issued by the Director-General of Shipping in the form and manner as prescribed, along with the return of income under section 263 to the effect that such company has complied with the minimum training requirement as per the guidelines referred to in sub-section (12) for the tax year. (14) If the minimum training requirement is not complied with for any five consecutive tax years, the option of the company for tonnage tax scheme shall cease to have effect from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scheme by a tonnage tax company shall not have effect in relation to a tax year unless such company- (a) maintains separate books of account in respect of the business of operating qualifying ships; and (b) furnishes, before the specified date referred to in sections 63, the report of an accountant, in the prescribed form, duly signed and verified by such accountant. (22) A temporary cessation (as against permanent cessation) of operating any qualifying ship by a company shall not be considered as a cessation of operating of such qualifying ship and the company shall be deemed to be operating such qualifying ship for the purposes of this Part. (23) Where a qualifying company continues to operate a ship or new inland vessel, as the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
