India - Income Tax Act 2010 - Saarc

1.587 CH. XII-G - PROVISIONS RELATING TO SHIPPING COMPANIES S. 115VM(7) For the purposes of computing depreciation under clause (iv) of section115VL in respect of an asset mentioned in sub-sections (5) and (6), depreciationcomputed for the previous year shall be allocated in the ratio of the number ofdays for which the asset was used for the tonnage tax business and for purposesother than tonnage tax business.Explanation 1.—For the removal of doubts, it is hereby declared that for thepurposes of this Act, depreciation on the block of qualifying assets and block ofother assets so created shall be allowed as if such written down value referredto in sub-section (2) had been brought forward from the preceding previous year.Explanation 2.—For the purposes of this section, “book written down value”means the written down value as appearing in the books of account.General exclusion of deduction and set off, etc.115VL. Notwithstanding anything contained in any other provision of thisAct, in computing the tonnage income of a tonnage tax company forany previous year (hereafter in this section referred to as the “relevant previousyear”) in which it is chargeable to tax in accordance with this Chapter—(i) sections 30 to 43B shall apply as if every loss, allowance or deductionreferred to therein and relating to or allowable for any of the relevantprevious years, had been given full effect to for that previous year itself;(ii) no loss referred to in sub-sections (1) and (3) of section 70 or subsections(1) and (2) of section 71 or sub-section (1) of section 72 or subsection(1) of section 72A, in so far as such loss relates to the businessof operating qualifying ships of the company, shall be carried forwardor set off where such loss relates to any of the previous years whenthe company is under the tonnage tax scheme;(iii) no deduction shall be allowed under Chapter VI-A in relation to theprofits and gains from the business of operating qualifying ships; and(iv) in computing the depreciation allowance under section 32, the writtendown value of any asset used for the purposes of the tonnage taxbusiness shall be computed as if the company has claimed and hasbeen actually allowed the deduction in respect of depreciation for therelevant previous years.Exclusion of loss.115VM. (1) Section 72 shall apply in respect of any losses that have accrued toa company before its option for tonnage tax scheme and which areattributable to its tonnage tax business, as if such losses had been set off againstthe relevant shipping income in any of the previous years when the company isunder the tonnage tax scheme.(2) The losses referred to in sub-section (1) shall not be available for set off againstany income other than relevant shipping income in any previous year beginningon or after the company exercises its option under section 115VP.(3) Any apportionment necessary to determine the losses referred to in subsection(1) shall be made on a reasonable basis.