Section 115VP of ITA, 1961 : Section 115Vp: Method And Time Of Opting For Tonnage Tax Scheme

Explanation using Example

Imagine that "Oceanic Transports Ltd." is a shipping company incorporated on December 1, 2004. The company owns several ships and is involved in the transportation of goods across international waters. The management of Oceanic Transports Ltd. decides that opting for the tonnage tax scheme under the Indian Income-tax Act, 1961, would be beneficial for their tax planning, as it offers a fixed tax on the net tonnage of their ships rather than the traditional tax on their actual profits.

Since the company was incorporated after the initial period mentioned in the Act (which was before January 1, 2005), it is eligible to apply for the tonnage t...

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