Section 227 — Computation of tonnage income
Old Act equivalent: Section 115VC of IT Act 1961 Sub-part: G—Special provisions relating to income of shipping companies
Statutory Text
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(1) The tonnage income of a tonnage tax company for a tax year shall be the aggregate of the tonnage income of each qualifying ship computed as per sub-sections (2) and (3). (2) For the purposes of sub-section (1), the tonnage income of each qualifying ship shall be computed as per the following formula:—
TI = DTI × N
where,—
TI = the tonnage income of each qualifying ship;
DTI = the daily tonnage income of each qualifying ship;
N = the number of days in the tax year or in part of the tax year in case the ship is operated by the company as a qualifying ship for only part of the tax year. (3) For the purposes of sub-section (2), the daily tonnage income of a qualifying ship having tonnage referred to in column B of the Table below shall be the amount specified in the corresponding entity in column C thereof:
TABLE Sl. No. Qualifying ship having net tonnage Amount of daily tonnage income A B C 1. Up to 1000. ` 70 for each 100 tons. 2. Exceeding 1000 but not more than
Provisos
None.
Explanations
None.
Tables
See statutory text above.
Key Structure
- Applies to: Qualifying company under tonnage tax scheme.
- Conditions: Tonnage income computed based on net tonnage of qualifying ships using prescribed table.
- Time limits: Computed for each day of operation.
- Monetary limits: Per Table: Up to 1000 tons: Rs. 70 per 100 tons; 1000-10000: Rs. 700 + Rs. 53 per 100; 10000-25000: Rs. 5470 + Rs. 42 per 100; Above 25000: Rs. 11770 + Rs. 29 per 100.
- Exceptions: Joint operations: proportionate tonnage based on profit-sharing ratio.
Cross-References
None identified.
Amendment Notes
None noted from the extracted pages.