Tonnage Tax Scheme - Section 226 ( New) / Section 115VB, Section 115VE, 115VF (Old)

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y a part of the ship or inland vessel is chartered by the company. • Such arrangements include slot charter, space charter and joint charter. Section 226(1)(b): Ships chartered out by the company A company shall not be regarded as operating a ship or inland vessel where it has chartered out the vessel: • on bareboat charter-cum-demise terms; or • on bareboat charter terms(without a crew, captain, fuel, etc. for a period exceeding three years. Section 226(2): Computation of Profits under the Tonnage Tax Scheme A tonnage tax company engaged in the business of operating qualifying ships shall compute the profits from such business under the tonnage tax scheme. Section 226(3): Tonnage ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....(1) shall not be chargeable to tax, subject to the other provisions of the Part. Comparative Analysis of Sections 115VB, 115VE and 115VF of Income Tax Act, 1961 and Section 226 of Income-tax Act, 2025 Particulars Sections 115VB, 115VE and 115VF (Income-Tax Act, 1961) Section 226 (Income-Tax Act, 2025) Scope The provisions separately deal with the meaning of operating ships, computation of profits under the tonnage tax scheme, and the treatment of tonnage income. Consolidates the provisions relating to the operation of ships, computation of profits under the tonnage tax scheme, and treatment of tonnage income into a single section. Meaning of Operating Ships Section 115VB defines when a comp....