Section 115VC of Income Tax Act for AY 2023-24

Section 115VC of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Qualifying company.

Amended and updated notes on section 115VC of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Qualifying company.

Chapter XIIG (Sections 115V to 115VZC) of the Income Tax Act 1961 deals with the provisions related to special provisions relating to income of shipping companies. Section 115VC of IT Act 1961-2023 provides for Qualifying company.

Recently, we have discussed in detail section 115VB (operating ships) of IT Act 1961. Today, we learn the provisions of section 115VC of Income-tax Act 1961. The amended provision of section 115VC is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 115VC of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.

Section-115VC: Qualifying company

For the purposes of this Chapter, a company is a qualifying company if—

  • (a) it is an Indian company;
  • (b) the place of effective management of the company is in India;
  • (c) it owns at least one qualifying ship; and
  • (d) the main object of the company is to carry on the business of operating ships.

Explanation: For the purposes of this section, “place of effective management of the company” means—

(A) the place where the board of directors of the company or its executive directors, as the case may be, make their decisions; or

(B) in a case where the board of directors routinely approve the commercial and strategic decisions made by the executive directors or officers of the company, the place where such executive directors or officers of the company perform their functions.


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