Notification No.120/2005 – Income Tax Dated 29-3-2005
In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—
1. (1) These rules may be called the Income-tax (Eighth Amendment) Rules, 2005.
(2) They shall come into force on the 1st day of April, 2005.
2. In the Income-tax Rules, 1962—
(a) in Part II, in sub-part G, after rule 11P, the following rules shall be inserted, namely:—
11Q. Computation of deemed tonnage – (1) For the purpose of the Explanation to sub-section (4) of section 115VG, deemed tonnage in respect of an arrangement of purchase of slots and slot charter shall be computed (illustrative formula given in Note 3 appearing after the corresponding Form No. 66) on the following basis :
2.5 TEU = 1 Net Tonnage (1 NT)
where TEU is Twenty foot Equivalent Unit (Container of this size)
(2) Computation of deemed tonnage (illustrative formula given in Note 4 appearing after the corresponding Form No. 66) in respect of an arrangement of sharing of break-bulk vessel shall be made on the following basis :
(i) in case where cargo is restricted by volume :
19 cubic meter (cbm) = 1 net tonnage (1 NT); and
(ii) in case where Cargo is restricted by weight
14 metric tons = 1 net tonnage (1 NT)
11R. Incidental activities for purposes of relevant shipping income – The incidental activities (details given in Note 5 appearing after the corresponding Form No. 66) referred to in sub-section (5) of section 115VI shall be the following, namely :—
(i) maritime consultancy charges;
(ii) income from loading or unloading of cargo;
(iii) ship management fees or remuneration received for managed vessels; and
(iv) maritime education or recruitment fees.
11S. Computation of average of net tonnage for charter-in of tonnage – The limit for charter-in of tonnage of the qualifying ships referred to in section 115VV (to be worked out according to the illustration explained in Note 6 appearing after the corresponding Form No. 66) during any previous year shall be computed by dividing the total number of chartered-in ton days by the total number of ton days operated by the company.
11T. Form of report of an accountant under clause (ii) of section 115VW – The report of audit of accounts of a qualified company which is required to be furnished under clause (ii) of section 115VW shall be in Form No. 66.
(b) in Appendix II upto Form No. 65, the following form shall be inserted, namely :—
FORM NO. 66
[F. No. 142/31/2004-TPL]