TMI BlogAudit report under clause (ii) of section 115VW of Income-Tax Act, 1961X X X X Extracts X X X X X X X X Extracts X X X X ..... view the limit of 49% under section 115VV. : 8. Relevant shipping income : (i) profits from core activities referred to in sub-section (2) of section 115V-I, and (ii) whether profits from incidental activities exceed 0.25 per cent of the turnover from core activities. 9. Tonnage tax reserve account : (i) Certify the book profit (ii) Minimum reserve created (iii) Reserve utilized in the manner laid down under sub-section(3) of section 115VT 10. Computation of tonnage income under section 115VG *Name of the qualifying ship Net tonnage/ deemed tonnage Owned / chartered Kind of charter** Daily tonnage income No. of days operated Tonnage income (5 x 6) 1 2 3 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Boat Charter cum demise basis. Declaration *I/We report that the statutory audit of .. . (mention name, address and permanent account number of the company) was conducted by *me/us/M/s....................................................................... *I/We have obtained the information and explanations which to the best of *my/our knowledge and belief were necessary for the purposes of ascertaining the profits of the said assessee derived from the business of operating qualifying ships. In *my/our opinion and to the best of *my/our information and according to the explanations given to *me/us the particulars given in the report are true and correct. Date Place .. Signed #Accountant Notes: 1. *Delete whichever is not applicable. 2. #This report is to be given by: (i) a chartered accountant within the meaning of Chartered Accountants Act, 1949 (38 of 1949); or (ii) any person who, in relation to any State, is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me basis 1 NT: 14 t when loadable capacity is taken on weight basis. 1 NT: 2.5 TEUs when loadable capacity is taken on TEU basis. Deemed tonnage would thus be calculated as under : 19 cbm is equivalent to 1 NT 14 metric tonne is equivalent to 1 NT 2.5 TEU is equivalent to 1 NT Worksheet for TEU : NT formula A. INDFEX Service (Far East to India Name of Vessel R.Gandhi Capacity @ 14 MT Homogenus TEUs Operating days Round voyage days Theoretical volumes carried Container carriage Voyages completed Yearly traffic Equivalent of one NT in TEUs NT 360 35 9749 1534 3068 10.29 31557 0.30894 B. ISE Service (UK Continent to India) Name of Vessel R. Gandhi Capacity @ 14 MT Homogenus TEUs Operating days Round voyage days Theoretical volumes carried Container carriage Voyages completed Yearly traffic Equivalent of one NT in TEUs NT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (vi) : 18675 M/Taxman (d) A vessel can either load on- *Maximum bale capacity (i.e., maximum capacity restricted by volume of cargo); or *Maximum dead weight capacity (i.e., maximum capacity restricted by weight of cargo). (e) The vessel State of Nagaland s is a typical break bulk vessel which operates in the India - UK Continent sector and can complete 3 voyages in a year. The complete circuit of India - UK Continent - India is considered as one voyage (i.e., cargo would be carried from India and discharged in UK Continent and on the return leg, cargo would be loaded at UK-Continent and discharged at India). (f) The vessel can thus carry one way cargo of maximum bale capacity of 26186 cubic meters (cbm), i.e., maximum volume permissible or cargo of maximum 18675 metric tons, i.e., maximum weight permissible. Thus conversion of cargo carried to net tons (NT) can be worked out depending on whether the carrying capacity is limited by volume or weight. The working have been done on the basis of what a normal breakbulk vessel can carry during a period of one year. A. Cargo restricted by volume - In each leg i.e., f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loading and unloading of cargo to and from the ship (such charges being separate from the transit charges). (c) Ship Management fees/remuneration for managed vessels - Fees or remuneration earned for providing services of operation and maintenance of vessels on behalf of other ship owners/agencies. (d) Maritime Education/Recruitment fees - Training fees charged/earned by a shipping company by extending its surplus training facility to other personnel in the shipping industry and fees earned from foreign ship owners for rendering services by way of screening, interviewing, short-listing and recruitment of floating staff and officers. 6. Calculation of average of net tonnage for computing the limit for charter-in (illustrative example): Ship No. Ownership/type of operation Net Tonnage No. of days Ton-days Operation Charter-in 1. Qualified ship chartered-in on BBCD basis 11000 365 4015000 - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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