The Tonnage Tax Scheme introduced vide Finance Act 2005 provides for taxation of income of a shipping company on presumptive basis. Under this scheme, the operating profit of a shipping company is determined on the basis of tonnage capacity of its ships.

The rates of daily tonnage income specified under this scheme remained unchanged since the introduction of this scheme. It is, therefore, proposed to amend section 115VG to revise the rate of daily tonnage income under this scheme as under:

Qualifying ship having net  tonnage Existing amount of daily tonnage  income Proposed amount  of daily tonnage  income

(1)

(2)

(3)

 

Up to 1,000

 

Rs.46 for each 100 tons

 

Rs.70 for each 100 tons

 

exceeding 1,000

but not more than 10,000

 

Rs.460 plus Rs.35 for each

100 tons exceeding 1,000 tons

 

Rs.700 plus Rs.53 for each 100 tons exceeding 1,000 tons

 

exceeding 10,000

but not more than 25,000

 

Rs.3,610 plus Rs.28 for each

100 tons exceeding 10,000 tons

 

Rs.5,470 plus Rs.42 for each

100 tons exceeding 10,000 tons

 

exceeding 25,000

 

Rs.7,810 plus Rs.19 for each

100 tons exceeding 25,000 tons

 

Rs.11,770 plus Rs.29 for each

100 tons exceeding 25,000 tons

 This amendment will take effect from 1st April, 2013 and will, accordingly, apply in relation to the  assessment year 2013-14  and subsequent assessment years.

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