Skip to content

CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Tax Planning and Managerial Decisions

Under the interpretation provisions for the tonnage tax scheme in the Income-tax Act, 2025, which of the following is a requirement for a company to be a "qualifying company"?

A qualifying company must own at least one qualifying ship. It also has to be an Indian company, with its place of effective management in India and a main object of operating ships. Nothing requires three ships or foreign incorporation.

  1. AIt must own at least one qualifying shipCorrect
  2. BIt must own at least three qualifying ships
  3. CIt must be a foreign company with a branch in India
  4. DIt must hold a fishing vessel licence

Explanation

A qualifying company must be an Indian company, have its place of effective management in India, own at least one qualifying ship, and have the main object of operating ships. Requiring three ships or foreign status is not in the definition.

Did you get it right without looking?

One question tells you little. A timed set on Tax Planning and Managerial Decisions shows your real accuracy, how long you take and where you lose marks.

Practise Tax Planning and Managerial DecisionsFree diagnostic mock

More Tax Planning and Managerial Decisions questions