Transfer of profits to Tonnage Tax Reserve Account - Section 115VT

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.... profit from the business of qualifying ship and the book loss from other sources [Section 115VT(2)] * Where the company has book profit from the business of operating qualifying ships and book loss from any other sources, and consequently, the company is not in a position to create the full or any part of the reserves under section 115VT(1), the company shall create the reserves to the extent possible in that previous year and the shortfall, if any, shall be added to the amount of the reserves required to be created for the following previous year and such shortfall shall be deemed to be part of the reserve requirement of that following previous year. * To the extent the shortfall in creation of reserves during a particular previo....

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.... of any asset outside India. Misutilisation or non-utilisation of Reserve [Section 115VT(4)] - Where any amount credited to the Tonnage Tax Reserve Account (a) has been utilised for any purpose other than for acquiring a new ship for the purposes of the business of the company or is utilised for distribution by way of dividends or profits or for remittance outside India as profits or for the creation of any asset outside India. (b) has not been utilised for the purpose for acquiring a new ship. (c) Upto 31.03.2026 -  has been utilised for the purpose of acquiring a new ship as specified in clause (a) of sub-section (3), but such ship, is sold or otherwise transferred, other than in any scheme of demerger by the company to....