Rules related to application for exercising the option for tonnage tax scheme and other matters related to it

Rules related to application for exercising the option for tonnage tax scheme and other matters related to it.

146. For the purposes of Tonnage Tax Scheme under Chapter XIII-G of the Act:––

(a) an application under section 231(1) to opt for the Tonnage Tax Scheme, or under section 231(10) for renewing the option for the Tonnage Tax Scheme, as the case may be, shall be made in Form No. 80 and shall be verified as specified therein;

(b) deemed tonnage under section 227(4)(b) in respect of an arrangement mentioned in column B of the following Table shall be computed on the basis as specified in column C thereof:—

TABLE

Sl. No. Basis of computation

(A) (C)

1 2.5 TEU = 1 Net Tonnage (1 NT), where TEU is Twenty foot Equivalent Unit (Container of this size).

2 (i) Where cargo is restricted by volume, 19 cubic meter (cbm) = 1 net tonnage (1 NT); and (ii) where cargo is restricted by weight, 14 metric tons = 1 net tonnage (1 NT).

(i) Where cargo is restricted by volume, 19 cubic meter (cbm) = 1 net tonnage (1 NT); and

(ii) where cargo is restricted by weight, 14 metric tons = 1 net tonnage (1 NT).

Sl. No.

Arrangement

Basis of computation

(A)

(B)

(C)

1

Purchase of slots and slot charter

2.5 TEU = 1 Net Tonnage (1 NT), where TEU is Twenty foot Equivalent Unit (Container of this size).

2

Sharing of break-bulk vessel

(i) Where cargo is restricted by volume, 19 cubic meter (cbm) = 1 net tonnage (1 NT); and

(ii) where cargo is restricted by weight, 14 metric tons = 1 net tonnage (1 NT).

(c) the incidental activities referred to in section 228(7) shall be the following:—

(i) maritime consultancy charges;

(ii) income from loading or unloading of cargo;

(iii) ship management fees or remuneration received for managed vessels; and

(iv) maritime education or recruitment fees;

(d) the limit for charter-in of tonnage of the qualifying ships referred to in section 232(15) to (20) during any tax year, shall be computed by dividing the total number of chartered-in ton days by the total number of ton days operated by the company; and

(e) the audit report of a qualified company, required to be furnished under section 232(21)(b) shall be in Form No. 81.