What is tonnage tax scheme?
What is tonnage tax scheme?
The Government has introduced Tonnage Tax System (TTS) for taxation of income derived from shipping activities by an Indian Company. The Tonnage Tax Scheme is an optional scheme for qualifying Indian shipping company. Only after satisfying certain conditions a company is eligible to be enrolled under the scheme.
How is tax tonnage calculated?
A tonnage tax is a taxation method which can be applied to shipping companies….Computation of Tonnage Income- Section 115 VG:
| Qualifying ship having Net tonnage | Amount of daily tonnage Income |
|---|---|
| Exceeding 25,000 tons | Rs. 11,770 plus Rs. 29 for each 100 tons exceeding 25,000 tons. |
Is tonnage a type of tax?
Tonnage tax is not a tax but rather a method for determining taxable income. By this the taxable income is calculated as a lump sum depending on the size (net tonnage) of the ship, independent of the actual earnings (profit or loss).
Why do we tonnage tax?
The tonnage tax scheme works as a defence mechanism against exploitation of loop holes in the tax system. Profit made from buying and selling new tonnage is also tax liable according to the tonnage tax scheme. This, in turn, stimulates the shipowners to put newly acquired tonnage under Danish flag.
What is tonnage fee?
Tonnage Fees means all documented fees or taxes payable to any Governmental Authority in connection with the tonnage of Distillers Grains or Syrup produced or marketed within a given jurisdiction.
What is Mat tax India?
MAT or Minimum Alternate Tax is a provision in Direct tax laws to limit tax exemptions availed by companies, so that they pay at least a minimum amount of corporate tax to the government. The key reason for introduction of MAT is to ensure minimum levels of taxation for all domestic and foreign companies in India.
Is Mat applicable to individuals?
Applicability of MAT Minimum Alternate Tax or MAT is only applicable to companies and not to individuals, HUFs, partnership firms, etc. Rules pertaining to Section 115JA are applicable to foreign companies that generate profits through their operations in India.
What is mat under income tax?
MAT stands for Minimum Alternate Tax and AMT stands for Alternate Minimum Tax. Initially the concept of MAT was introduced for companies and progressively it has been made applicable to all other taxpayers in the form of AMT.
What is Mat Tax India?
What is net tonnage of ship?
Net tonnage (often abbreviated as NT, N.T. or nt) is a dimensionless index calculated from the total moulded volume of the ship’s cargo spaces by using a mathematical formula. Net tonnage is used to calculate the port duties and should not be taken as less than 30 per cent of the ship’s gross tonnage.
Who is subject to AMT?
You only have to worry about the AMT if your adjusted gross income exceeds the exemption. If you make that much income or more, that’s the AMT taxable income. You may have to calculate your alternative minimum taxable income and pay the higher tax. You can do so on Form 6251.
What is difference between Mat and AMT?
MAT stands for Minimum Alternate Tax and AMT stands for Alternate Minimum Tax. Initially the concept of MAT was introduced for companies and progressively it has been made applicable to all other taxpayers in the form of AMT. In this part you can gain knowledge about various provisions relating to MAT and AMT.
Who is excluded from the tonnage tax scheme?
(d) the tonnage tax company is excluded from the tonnage tax scheme under section 115VZC. And the profit and gain of the company from the business of operating qualifying ships shall be computed in accordance with the other provision of this Act.
How is tonnage income of tonnage tax company calculated?
Notwithstanding anything contained in any other provision of this Act, in computing the tonnage income of tonnage tax company for any previous year (Relevant previous year) in which it is chargeable to tax in accordance with this chapter –
When does section 72 apply to tonnage tax?
Section 72 shall apply in respect of any losses that have accrued to a company before its opting for tonnage tax scheme and which are attributable to its tonnage tax business, as if such losses had been set off against the relevant shipping income in any previous year when company is under the tonnage tax scheme.
How is the tonnage of a qualifying ship calculated?
(1) The tonnage income of each qualifying ship shall be the daily tonnage income of each such qualifying ship multiply by- (b) the number of days in part of the previous year in case the ship is operated by the company as a qualifying ship for only part of the previous year, as the case may be.