akhilesh's blog

To tax profits from shipping activities by an Indian company, the government has established the Tonnage Tax System. For eligible Indian shipping companies, this tax system is an optional one. A corporation can participate in the programme only after meeting a number of requirements.

Subject to and in accordance with the requirements of this section, a tonnage tax company shall be required to credit to a reserve account (hereinafter referred to as the Tonnage Tax Reserve Account in this section) an amount equal to not less than twenty percent of the book profit inferred from the activities described in clauses of sub-section (1) of section 115V-I in each preceding year to be used in the manner specified in a sub-section.

An eligible company that, on its own, chooses out of the tonnage tax scheme, fails to comply with the provisions of sections 115VT, 115VU, or 115VV, or whose option has been excluded from the tonnage tax scheme pursuant to an order made under sub-section (1) of section 115VZC, shall not be eligible to opt for the tonnage tax scheme for a period of ten years following the date of opting out, failing to comply, or order, as

Any revenues or gains resulting from the transfer of a capital asset that is an asset belonging to the block of qualifying assets will be subject to income tax in accordance with the provisions of section 45 read with section 50, and the capital gains so arising will be calculated in pursuance of the provisions of sections 45 to 51.

The tonnage revenue of each of these companies shall be an agreed amount to a share of income commensurate to its share of that interest where a qualifying ship is operated by more than one company through a joint interest in the ship or through an agreement for the use of the ship and their corresponding shares are definite and ascertainable.

What is a common cost?

When the chief executive of a domestic firm fails to pay the full or any portion of the tax on distributed profits mentioned in subsection (1) of section 115-O within the time allotted under subsection (3) of that section, he or she will be responsible for paying simple interest at the rate of 1% for each month or portion of that month on the quantity of such tax for the period starting on the date immediately following th

Despite anything stated in any other section of this Act and in accordance with this section's rules, any amount proclaimed, distributed, or paid by a domestic firm as a dividend on or after April 1, 2003, whether from current or accumulated profits, shall be subject to additional income tax at a rate of 15%, in addition to the income tax chargeable in respect of the overall revenue of such company for any assessment year.

Despite any other provisions of this Act, if an assessee is a company and its total income computed under this Act for any prior year relevant to the assessment year beginning on or after the first day of April 1997 is less than 30% of its book profit, the assessee's total income chargeable to tax for such prior year shall be deemed to be an amount equal to 30% of its book profit.

For all or any of the purposes listed in a sub-section, the authorised official may requisition the assistance of any police officer, any officer of the Central Government, or both, and it is the responsibility of every such officer to comply with such a request.