Section 115VX of Income Tax Act "Determination of tonnage"
115VX. (1) For the purposes of this Chapter,-
(a) the tonnage of a ship shall be determined in accordance
with the valid certificate indicating its tonnage;
(b) "valid certificate" means,-
(i) in case of ships registered in India-
(a) having a length of less than twenty-four metres, a
certificate issued under the Merchant Shipping (Tonnage
Measurement of Ship) Rules, 1987 made under the Merchant
Shipping Act, 1958 (44 of 1958);
(b) having a length of twenty-four metres or more, an
international tonnage certificate issued under the
provisions of the Convention on Tonnage Measurement of
Ships, 1969, as specified in the Merchant Shipping (Tonnage
Measurement of Ship) Rules, 1987 made under the Merchant
Shipping Act, 1958 (44 of 1958);
(ii) in case of ships registered outside India, a licence
issued by the Director-General of Shipping under section 406
or section 407 of the Merchant Shipping Act, 1958 (44 of
1958) specifying the net tonnage on the basis of Tonnage
Certificate issued by the Flag State Administration where
the ship is registered or any other evidence acceptable to
the Director-General of Shipping produced by the ship owner
while seeking permission for chartering in the ship.
115VY. Where there has been an amalgamation of a company
with another company or companies, then, subject to the
other provisions of this section, the provisions relating to
the tonnage tax scheme shall, as far as may be, apply to the
amalgamated company if it is a qualifying company:
Provided that where the amalgamated company is not a tonnage
tax company, it shall exercise an option for tonnage tax
scheme under sub-section (1) of section 115VP within three
months from the date of the approval of the scheme of
amalgamation:
Provided further that where the amalgamating companies are
tonnage tax companies, the provisions of this Chapter shall,
as far as may be, apply to the amalgamated company for such
period as the option for tonnage tax scheme which has the
longest unexpired period continues to be in force:
Provided also that where one of the amalgamating companies
is a qualifying company as on the 1st day of October, 2004
and which has not exercised the option for tonnage tax
scheme within the initial period, the provisions of this
Chapter shall not apply to the amalgamated company and the
income of the amalgamated company from the business of
operating qualifying ships shall be computed in accordance
with the other provisions of this Act.