Amended and updated notes on section 115VD 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 ship.
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 115VD of IT Act 1961-2023 provides for Qualifying ship.
Recently, we have discussed in detail section 115VC (Qualifying company) of IT Act 1961. Today, we learn the provisions of section 115VD of Income-tax Act 1961. The amended provision of section 115VD 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 115VD 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-115VD: Qualifying ship
For the purposes of this Chapter, a ship is a qualifying ship if—
- (a) it is a sea going ship or vessel of fifteen net tonnage or more;
- (b) it is a ship registered under the Merchant Shipping Act, 1958 (44 of 1958), or a ship registered outside India in respect of which a licence has been issued by the Director-General of Shipping under section 406 or section 407 of the Merchant Shipping Act, 1958 (44 of 1958); and
- (c) a valid certificate in respect of such ship indicating its net tonnage is in force,
but does not include—
(i) a sea going ship or vessel if the main purpose for which it is used is the provision of goods or services of a kind normally provided on land;
(ii) fishing vessels;
(iii) factory ships;
(iv) pleasure crafts;
(v) harbour and river ferries;
(vi) offshore installations;
(vii) [Omitted]
(viii) a qualifying ship which is used as a fishing vessel for a period of more than thirty days during a previous year.