Tonnage tax scheme option requires timely application, approval, and compliance, with fixed validity, renewal, and re-entry restrictions.

Section 231 requires a qualifying company to apply to the jurisdictional Joint Commissioner in the prescribed form to opt for the tonnage tax scheme. Approval or refusal follows eligibility verification, and refusal requires a reasonable opportunity of being heard. An approved option applies from the tax year of exercise and remains effective for ten years. It ceases upon loss of qualifying status, specified defaults, exclusion, or voluntary withdrawal. Renewal is available within the prescribed period, while voluntary withdrawal, specified defaults, or exclusion result in a ten-year restriction on re-entry.

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