Income Tax Act, 2025
Section 115VU: Minimum training requirement for tonnage tax company.—(1) A tonnage tax company,
115VU. Minimum training requirement for tonnage tax company.—(1) A tonnage tax company,
after its option has been approved under sub-section (3) of section 115VP, shall comply with the
minimum training requirement in respect of trainee officers in accordance with the guidelines framed by
the Director-General of Shipping and notified in the Official Gazette by the Central Government.
(2) The tonnage tax company shall be required to furnish a copy of the certificate issued by the
Director-General of Shipping along with the return of income under section 139 to the effect that such
company has complied with the minimum training requirement in accordance with the guidelines referred
to in sub-section (1) for the previous year.
(3) If the minimum training requirement is not complied with for any five consecutive previous years,
the option of the company for tonnage tax scheme shall cease to have effect from the beginning of the
previous year following the fifth consecutive previous year in which the failure to comply with the
minimum training requirement under sub-section (1) had occurred.
115VV. Limit for charter in of tonnage.—(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.
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115VW. Maintenance and audit of accounts.—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 form 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.
A tonnage tax company,
after its option has been approved under sub-section
of section 115VP, shall comply with the
minimum training requirement in respect of trainee officers in accordance with the guidelines framed by
the Director-General of Shipping and notified in the Official Gazette by the Central Government.
The tonnage tax company shall be required to furnish a copy of the certificate issued by the
Director-General of Shipping along with the return of income under section 139 to the effect that such
company has complied with the minimum training requirement in accordance with the guidelines referred
to in sub-section
for the previous year.
If the minimum training requirement is not complied with for any five consecutive previous years,
the option of the company for tonnage tax scheme shall cease to have effect from the beginning of the
previous year following the fifth consecutive previous year in which the failure to comply with the
minimum training requirement under sub-section
had occurred.
115VV. Limit for charter in of tonnage.—
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.
The proportion of net tonnage referred to in sub-section
in respect of a previous year shall be
calculated based on the average of net tonnage during that previous year.
For the purposes of sub-section
Where the net tonnage of ships chartered in exceeds the limit under sub-section
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.
Where the limit under sub-section
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.
521
115VW. Maintenance and audit of accounts.—An option for tonnage tax scheme by a tonnage tax
company shall not have effect in relation to a previous year unless such company—
maintains separate books of account in respect of the business of operating qualifying ships;
and
furnishes, along with the return of income for that previous year, the report of an accountant,
in the prescribed form 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
of section 288.