Section 115VQ of Income Tax Act 1961

Section 115VQ of Income Tax Act 1961

Period for which tonnage tax option to remain in force

(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.