TMI BlogCOMPUTATION OF PROFITS OF BUSINESS OF OPERATING A QUALIFYING SHIPX X X X Extracts X X X X X X X X Extracts X X X X ..... ion 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 daily tonnage income of a qualifying ship having tonnage referred to in column (1) of the Table given below shall be the amount specified in the corresponding entry in column (2) of the said Table: TABLE Serial Number Qualifying ship having net tonnage Amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny 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 of the financial year; and (b) the period beginning with the first day of the financial year and ending on the day immediately preceding the date of business reorganisation, in any other case. 9. A company shall continue to be regarded as an operator of a qualifying ship even in the case of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 company in respect of its activities other than its business of operating a qualifying ship; (f) valuation of goods or services where these are transferred between the business of operating a qualifying ship and any other business carried on by a qualifying shipping company; (g) determination of arm's length price of the business transactions if the arrangement of transactions results in abuse of the tonnage income scheme. 15. In this Schedule, unless the context otherwise requires,— (a) "bareboat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipts from all such activity does not exceed one-fourth per cent. of the turnover from the core shipping activities; (f) "qualifying shipping company" means a company, which fulfils all the following conditions, namely:— (i) it is an Indian company; (ii) the place of effective management of the company is in India; (iii) it owns at least one qualifying ship; and (iv) the main object of the company is to carry on the business of operating ships; (g) "qualifying ship" means a ship, which fulfils the following conditions, namely:— (i) it is a seagoing ship or vessel of fifteen net tonnage or more; (ii) it is a ship registered or licensed under, or for the purposes of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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