Section 115VB of Income Tax Act "Operating ships"
115VB. For the purposes of this Chapter, a company shall
be regarded as operating a ship if it operates any ship
whether owned or chartered by it and includes a case where
even a part of the ship has been chartered in by it in an
arrangement such as slot charter, space charter or joint
charter :
Provided that a company shall not be regarded as the
operator of a ship which has been chartered out by it on
bareboat charter-cum-demise terms or on bareboat charter
terms for a period exceeding three years.
115VC. For the purposes of this Chapter, a company is a
qualifying company if-
(a) it is an Indian company;
(b) the place of effective management of the company is in
India;
(c) it owns at least one qualifying ship; and
(d) the main object of the company is to carry on the
business of operating ships.
Explanation.-For the purposes of this section, "place of
effective management of the company" means-
(A) the place where the board of directors of the company or
its executive directors, as the case may be, make their
decisions; or
(B) in a case where the board of directors routinely approve
the commercial and strategic decisions made by the executive
directors or officers of the company, the place where such
executive directors or officers of the company perform their
functions.