Section 115VP of Income Tax Act "Method and time of opting for tonnage tax scheme"
115VP. (1) A qualifying company may opt for the tonnage
tax scheme by making an application to the Joint
Commissioner having jurisdiction over the company in the
form and manner as may be prescribed, for such scheme.
(2) The application under sub-section (1) may be made by any
existing qualifying company at any time after the 30th day
of September, 2004 but before the 1st day of January, 2005
(hereafter referred to as the "initial period"):
Provided that-
(i) a company incorporated after the initial period; or
(ii) a qualifying company incorporated before the initial
period but which becomes a qualifying company for the first
time after the initial period, may make an application
within three months of the date of its incorporation or the
date on which it became a qualifying company, as the case
may be.
(3) On receipt of an application for option for tonnage
tax scheme under sub-section (1), the Joint Commissioner may
call for such information or documents from the company as
he thinks necessary in order to satisfy himself about the
eligibility of the company and after satisfying himself
about such eligibility of the company to make such option
for tonnage tax scheme, he-
(i) shall pass an order in writing approving the option for
tonnage tax scheme; or
(ii) shall, if he is not so satisfied, pass an order in
writing refusing to approve the option for tonnage tax
scheme, and a copy of such order shall be sent to the
applicant:
Provided that no order under clause (ii) shall be passed
unless the applicant has been given a reasonable opportunity
of being heard.
(4) Every order granting or refusing the approval of the
option for tonnage tax scheme under clause (i) or clause
(ii), as the case may be, of sub-section (3) shall be passed
before the expiry of one month from the end of the month in
which the application was received under sub-section (1).
(5) Where an order granting approval is passed under
sub-section (3), the provisions of this Chapter shall apply
from the assessment year relevant to the previous year in
which the option for tonnage tax scheme is exercised.
115VQ. (1) An option for tonnage tax scheme, after it has
been approved under sub-section (3) of section 115VP, shall
remain in force for a period of ten years from the date on
which such option has been exercised and shall be taken into
account from the assessment year relevant to the previous
year in which such option is exercised.
(2) An option for tonnage tax scheme shall cease to have
effect from the assessment year relevant to the previous
year in which-
(a) the qualifying company ceases to be a qualifying
company;
(b) a default is made in complying with the provisions
contained in section 115VT or section 115VU or section
115VV;
(c) the tonnage tax company is excluded from the tonnage tax
scheme under section 115VZC;
(d) the qualifying company furnishes to the Assessing
Officer, a declaration in writing to the effect that the
provisions of this Chapter may not be made applicable to it,
and the profits and gains of the company from the business
of operating qualifying ships shall be computed in
accordance with the other provisions of this Act.