Tonnage tax: qualifying shipping companies may opt to compute shipping profits under a tonnage-based regime with conditions. Chapter XII-G creates a tonnage tax scheme permitting qualifying Indian companies operating qualifying seagoing ships to elect computation of shipping ... Summary
Tonnage tax: qualifying shipping companies may opt to compute shipping profits under a tonnage-based regime with conditions.
Chapter XII-G creates a tonnage tax scheme permitting qualifying Indian companies operating qualifying seagoing ships to elect computation of shipping profits by a tonnage-based formula. It requires separate treatment of the tonnage-tax business, prescribes daily tonnage rates linked to certified net tonnage and days of operation, disallows deductions in computing tonnage income, and establishes allocation rules for asset blocks and depreciation. The Chapter sets procedures for opting in and duration of the option, compliance conditions including a reserve account for ship acquisition, training and accounting requirements, charter-in limits, and anti-abuse exclusion powers.
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