Amended and updated notes on section 115VW 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 maintenance and audit of accounts.
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 115VW of IT Act 1961-2023 provides for maintenance and audit of accounts.
Recently, we have discussed in detail section 115VV (limit for charter in of tonnage) of IT Act 1961. Today, we learn the provisions of section 115VW of Income-tax Act 1961. The amended provision of section 115VW 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 115VW 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-115VW: Maintenance and audit of accounts
An option for tonnage tax scheme by a tonnage tax company shall not have effect in relation to a previous year unless such company—
- (i) maintains separate books of account in respect of the business of operating qualifying ships; and
- (ii) furnishes, before the specified date referred to in section 44AB, the report of an accountant, in the prescribed form duly signed and verified by such accountant.
[The Clause (ii) of section 115VW has been amended w.e.f. 01.04.2020 by the Finance Act 2020]
Explanation: For the purposes of this section, “accountant” shall have the same meaning as in the Explanation below sub-section (2) of section 288.