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What is Method and time of opting for tonnage tax scheme? What is Period for which tonnage tax option to remain in force? Section 115VP and 115VQ of Income Tax Act 1961

Method and time of opting for tonnage tax scheme and Period for which tonnage tax option to remain in force are defined under sections 115VP and 115VQ of Income Tax Act 1961. Provisions under these Sections are :

Section 115VP of Income Tax Act "Method and time of opting for tonnage tax scheme"

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 prescribed1, for such scheme.

(2) The application under sub-section (1) may be made by any existing qualifying company at any time after the 30th day of September, 2004 but before the 1st day of January, 2005 (hereafter referred to as the "initial period"):

 

Provided that-
(i) a company incorporated after the initial period; or

(ii) 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.

(3) On receipt of an application for option for tonnage tax scheme under sub-section (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-

(i) shall pass an order in writing approving the option for tonnage tax scheme; or

(ii) 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:

Provided that no order under clause (ii) shall be passed unless the applicant has been given a reasonable opportunity of being heard.

(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 sub-section (3) shall be passed before the expiry of one month from the end of the month in which the application was received under sub-section (1).

(5) Where an order granting approval is passed under sub-section (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.

Section 115VQ of Income Tax Act "Period for which tonnage tax option to remain in force"

Section 115VQ. (1) An option for tonnage tax scheme, after it has been approved under sub-section (3) of section 115VP, shall remain in force for a period of ten years from the date on which such option has been exercised and shall be taken into account from the assessment year relevant to the previous year in which such option is exercised.

(2) An option for tonnage tax scheme shall cease to have effect from the assessment year relevant to the previous year in which-

(a) the qualifying company ceases to be a qualifying company;
(b) a default is made in complying with the provisions contained in section 115VT or section 115VU or section 115VV;
(c) the tonnage tax company is excluded from the tonnage tax scheme under section 115VZC;

(d) the qualifying company furnishes to the Assessing Officer, a declaration in writing to the effect that the provisions of this Chapter may not be made applicable to it,
and the profits and gains of the company from the business of operating qualifying ships shall be computed in accordance with the other provisions of this Act.

Income Tax Act 1961

What is Depreciation? What is General exclusion of deduction and set off, etc? Section 115VK and 115VL of Income Tax Act 1961

What is Exclusion of loss? What is Chargeable gains from transfer of tonnage tax assets? Section 115VM and 115VN of Income Tax Act 1961

What is Method and time of opting for tonnage tax scheme? What is Period for which tonnage tax option to remain in force? Section 115VP and 115VQ of Income Tax Act 1961

What is Renewal of tonnage tax scheme? What is Prohibition to opt for tonnage tax scheme in certain cases? Section 115VR and 115VS of Income Tax Act 1961

What is Transfer of profits to Tonnage Tax Reserve Account? What is Minimum training requirement for tonnage tax company? Section 115VT and 115VU of Income Tax Act 1961

What is Limit for charter in of tonnage? What is Maintenance and audit of accounts? Section 115VV and 115VW of Income Tax Act 1961

What is Determination of tonnage Amalgamation? Section 115VX and 115VY of Income Tax Act 1961

What is Demerger? What is the Effect of temporarily ceasing to operate qualifying ships? Section 115VZ and 115VZA of Income Tax Act 1961

What is Avoidance of tax? What is Exclusion from tonnage tax scheme? Section 115VZB and 115VZC of Income Tax Act 1961

What are the Definitions of Fringe Benefit? What is Charge of fringe benefit tax? Section 115W and 115WA of Income Tax Act 1961

What are Fringe benefits? What is Value of fringe benefits? Section 115WB and 115WC of Income Tax Act 1961

What is Return of fringe benefits? What is fringe benefits Assessment? Section 115WD and 115WE of Income Tax Act 1961

What is Best judgment assessment? What is Fringe benefits escaping assessment? Section 115WF and 115WG of Income Tax Act 1961

What is Issue of notice where fringe benefits have escaped assessment? What is the method of Payment of fringe benefit tax? Section 115WH and 115WI of Income Tax Act 1961

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