Income Tax Act, 2025
Section 115VC: Qualifying company.—For the purposes of this Chapter, a company is a qualifying
115VC. Qualifying company.—For the purposes of this Chapter, a company is a qualifying
company if—
(a) it is an Indian company;
(b) the place of effective management of the company is in India;
(c) it owns at least one qualifying ship; and
(d) the main object of the company is to carry on the business of operating ships.
Explanation.—For the purposes of this section, “place of effective management of the company”
means—
(A) the place where the board of directors of the company or its executive directors, as the case
may be, make their decisions; or
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(B) in a case where the board of directors routinely approve the commercial and strategic
decisions made by the executive directors or officers of the company, the place where such executive
directors or officers of the company perform their functions.
115VD. Qualifying ship.—For the purposes of this Chapter, a ship is a qualifying ship if—
(a) it is a sea going ship or vessel of fifteen net tonnage or more;
(b) it is a ship registered under the Merchant Shipping Act, 1958 (44 of 1958), or a ship
registered outside India in respect of which a licence has been issued by the Director-General of
Shipping under section 406 or section 407 of the Merchant Shipping Act, 1958 (44 of 1958); and
(c) a valid certificate in respect of such ship indicating its net tonnage is in force,
but does not include—
(i) a sea going ship or vessel if the main purpose for which it is used is the provision of
goods or services of a kind normally provided on land;
(ii) fishing vessels;
(iii) factory ships;
(iv) pleasure crafts;
(v) harbour and river ferries;
(vi) offshore installations;
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(viii) a qualifying ship which is used as a fishing vessel for a period of more than thirty days
during a previous year.
it is an Indian company;
the place of effective management of the company is in India;
it owns at least one qualifying ship; and
the main object of the company is to carry on the business of operating ships.
Explanation.—For the purposes of this section, “place of effective management of the company”
means—
the place where the board of directors of the company or its executive directors, as the case
may be, make their decisions; or
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in a case where the board of directors routinely approve the commercial and strategic
decisions made by the executive directors or officers of the company, the place where such executive
directors or officers of the company perform their functions.
115VD. Qualifying ship.—For the purposes of this Chapter, a ship is a qualifying ship if—
it is a sea going ship or vessel of fifteen net tonnage or more;
it is a ship registered under the Merchant Shipping Act, 1958 (44 of 1958), or a ship
registered outside India in respect of which a licence has been issued by the Director-General of
Shipping under section 406 or section 407 of the Merchant Shipping Act, 1958 (44 of 1958); and
a valid certificate in respect of such ship indicating its net tonnage is in force,
but does not include—
a sea going ship or vessel if the main purpose for which it is used is the provision of
goods or services of a kind normally provided on land;
fishing vessels;
factory ships;
pleasure crafts;
harbour and river ferries;
offshore installations;
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a qualifying ship which is used as a fishing vessel for a period of more than thirty days
during a previous year.