TaxTMI 
TaxTMI 
COMPUTATION OF PROFITS OF BUSINESS OF OPERATING A QUALIFYING SHIP
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....p; Where A = the total tonnage income of the financial year; B = the aggregate of the amounts referred to in sub-section (2) of section 33; and C = the amount of negative profit computed under this Schedule in respect of the business of operating a qualifying ship, for the financial year immediately preceding the relevant financial year. 2. The tonnage income of the financial year in respect of each qualifying ship shall be the daily tonnage income of the ship multiplied by the number of days during which the ship is operated by the company as a qualifying ship. 3. The ....
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....has been actually allowed the deduction in respect of depreciation under section 38, initial depreciation under section 39 and terminal allowance under section 40. 7. The amount of common costs (including depreciation) attributable to the business of operating a qualifying ship and any other business shall be determined in such manner as may be prescribed. 8. The successor in a business reorganisation of the business of operating a qualifying ship shall be allowed a deduction in respect of the negative profit determined in the case of the predecessor for— (a) the financial year immediately preceding the financial year in which the business reorganisation has taken place if the reorganisation is on the first day....
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....cheme; (c) such other conditions for applicability of tonnage income scheme having regard to the need for generating internal accruals for acquiring new ships and training of crews; (d) limits for charter in of tonnage; (e) prevention of abuse of the tonnage income scheme, having regard to the need to ensure that no transaction or arrangement results, or but for the rules prescribed hereunder, would have resulted in a tax advantage being obtained for— (i) a person other than a qualifying shipping company; or (ii) a qualifying shipping c....
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....t under which a qualifying shipping company agrees to transport a specified quantity of specified products at a specified rate, between designated loading and discharging ports over a specified period by a qualifying ship; (iii) on-board or on-shore activities of qualifying ship comprising of fares and food and beverages consumed on board; and (iv) slot charters, space charters, joint charters, feeder services, or container box leasing, of a qualifying ship; (e) "permitted incidental shipping activity" means any activity relating to chartering out of a qualifying ship on bareboat charter terms, maritime c....
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....r partly in an arrangement such as slot charter, space charter, or joint charter; and (v) the ship is not— (A) a seagoing 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; (B) a fishing vessel as defined in clause (12) of section 3 of the Merchant Shipping Act, 1958; (C) a factory ship including a vessel providing processing services in respect of the processing of the fishing produce; &....