India - Income Tax Act 2010 - Saarc

1.589 CH. XII-G - PROVISIONS RELATING TO SHIPPING COMPANIES S. 115VS(ii) shall, if he is not so satisfied, pass an order in writing refusing toapprove the option for tonnage tax scheme,and a copy of such order shall be sent to the applicant:Provided that no order under clause (ii) shall be passed unless the applicant hasbeen given a reasonable opportunity of being heard.(4) Every order granting or refusing the approval of the option for tonnage taxscheme under clause (i) or clause (ii), as the case may be, of sub-section (3) shallbe passed before the expiry of one month from the end of the month in which theapplication was received under sub-section (1).(5) Where an order granting approval is passed under sub-section (3), theprovisions of this Chapter shall apply from the assessment year relevant to theprevious year in which the option for tonnage tax scheme is exercised.Period for which tonnage tax option to remain in force.115VQ. (1) An option for tonnage tax scheme, after it has been approved undersub-section (3) of section 115VP, shall remain in force for a period often years from the date on which such option has been exercised and shall betaken into account from the assessment year relevant to the previous year inwhich such option is exercised.(2) An option for tonnage tax scheme shall cease to have effect from theassessment year relevant to the previous year in which—(a) the qualifying company ceases to be a qualifying company;(b) a default is made in complying with the provisions contained insection 115VT or section 115VU or section 115VV;(c) the tonnage tax company is excluded from the tonnage tax schemeunder section 115VZC;(d) the qualifying company furnishes to the Assessing Officer, a declarationin writing to the effect that the provisions of this Chapter may notbe made applicable to it,and the profits and gains of the company from the business of operatingqualifying ships shall be computed in accordance with the other provisions of thisAct.Renewal of tonnage tax scheme.115VR. (1) An option for tonnage tax scheme approved under sub-section (3)of section 115VP may be renewed within one year from the end of theprevious year in which the option ceases to have effect.(2) The provisions of sections 115VP and 115VQ shall apply in relation to arenewal of the option for tonnage tax scheme in the same manner as they applyin relation to the approval of option for tonnage tax scheme.Prohibition to opt for tonnage tax scheme in certain cases.115VS. A qualifying company, which, on its own, opts out of the tonnage taxscheme or makes a default in complying with the provisions of section115VT or section 115VU or section 115VV or whose option has been excludedfrom tonnage tax scheme in pursuance of an order made under sub-section (1)of section 115VZC, shall not be eligible to opt for tonnage tax scheme for a periodof ten years from the date of opting out or default or order, as the case may be.