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

Limit for charter in of tonnage and Maintenance and audit of accounts are defined under sections 115VV and 115VW of Income Tax Act 1961. Provisions under these Sections are :

Section 115VV of Income Tax Act "Limit for charter in of tonnage"

Section 115VV. (1) In the case of every company which has opted for tonnage tax scheme, not more than forty-nine per cent of the net tonnage of the qualifying ships operated by it during any previous year shall be chartered in.

(2) The proportion of net tonnage referred to in sub-section (1) in respect of a previous year shall be calculated based on the average of net tonnage during that previous year.

(3) For the purposes of sub-section (2), the average of net tonnage shall be computed in such manner as may be prescribed in consultation with the Director-General of Shipping.

(4) Where the net tonnage of ships chartered in exceeds the limit under sub-section (1) during any previous year, the total income of such company in relation to that previous year shall be computed as if the option for tonnage tax scheme does not have effect for that previous year.

(5) Where the limit under sub-section (1) had exceeded in any two consecutive previous years, the option for tonnage tax scheme shall cease to have effect from the beginning of the previous year following the second consecutive previous year in which the limit had exceeded.

Explanation.-For the purposes of this section, the term "chartered in" shall exclude a ship chartered in by the company on bareboat charter-cum-demise terms.

 

Section 115VW of Income Tax Act "Maintenance and audit of accounts"

Section 115VW. An option for tonnage tax scheme by a tonnage tax company shall not have effect in relation to a previous year unless such company-

(i) maintains separate books of account in respect of the business of operating qualifying ships; and

(ii) furnishes, along with the return of income for that previous year, the report of an accountant, in the prescribed form4 duly signed and verified by such accountant.

Explanation.-For the purposes of this section, "accountant" shall have the same meaning as in the Explanation below sub-section (2) of section 288.

   
 

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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