CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Tax Planning and Managerial Decisions
A ship is seagoing, registered under the Merchant Shipping Act, 1958, holds a valid net tonnage certificate and has a net tonnage of 10. Is it a "qualifying ship" under the Income-tax Act, 2025?
No. A qualifying ship must be of fifteen net tonnage or more. With a net tonnage of 10, the vessel fails this condition even though it is registered and holds a valid tonnage certificate.
- AYes, because registration alone suffices
- BNo, because the net tonnage is below fifteenCorrect
- CYes, because any seagoing ship qualifies
- DNo, because only inland vessels can qualify
Explanation
A qualifying ship must have a net tonnage of fifteen or more, be duly registered or licensed, and have a valid tonnage certificate. Here the tonnage of 10 is below fifteen, so the test fails despite registration and certificate.
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