Section 115VZ of Income Tax Act "Demerger"
115VZ. Where in a scheme of demerger, the demerged
company transfers its business to the resulting company
before the expiry of the option for tonnage tax scheme,
then, subject to the other provisions of this Chapter, the
tonnage tax scheme shall, as far as may be, apply to the
resulting company for the unexpired period if it is a
qualifying company:
Provided that the option for tonnage tax scheme in respect
of the demerged company shall remain in force for the
unexpired period of the tonnage tax scheme if it continues
to be a qualifying company.
115VZA. (1) 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
Chapter.
(2) Where a qualifying company continues to operate a ship,
which temporarily ceases to be a qualifying ship, such ship
shall not be considered as a qualifying ship for the
purposes of this Chapter.