What type of tax is a tonnage tax?

Tonnage Tax is a way for qualifying shipping companies to calculate their shipping related profits for Corporation Tax (CT) purposes. The shipping related profits are calculated based on the tonnage of the ships used in the company’s shipping trade.

What is the meaning of tonnage tax scheme?

Thus, tonnage taxation is a scheme of presumptive taxation wherein notional income arising from operation of ships is determined on basis of tonnage of ships.

How is tax tonnage calculated?

A tonnage tax is a taxation method which can be applied to shipping companies….Computation of Tonnage Income- Section 115 VG:

Qualifying ship having Net tonnage Amount of daily tonnage Income
Exceeding 25,000 tons Rs. 11,770 plus Rs. 29 for each 100 tons exceeding 25,000 tons.

Is the tonnage tax an income tax?

Taxpayers that elect the application of the tonnage tax regime pay tax based on their notional shipping income, and receive a corresponding exclusion from the corporate income tax for certain income attributable to their qualifying shipping activities.

What is security transaction tax in India?

Securities Transaction Tax (STT) is a tax payable in India on the value of securities (excluding commodities and currency) transacted through a recognized stock exchange. As of 2016, it is 0.1% for delivery based equity trading. STT does not apply to off-market transactions or on commodity or currency transactions.

What is qualifying ship in income tax?

What is a Qualifying Ship? A qualifiying ship under the tonnage tax scheme satisfied the following criterias: It is a sea going ship or a vessel of 15 net tonnage or more. A ship that is registered under the Merchant Shipping Act , 1958.

Is Mat applicable to individuals?

Applicability of MAT Minimum Alternate Tax or MAT is only applicable to companies and not to individuals, HUFs, partnership firms, etc. Rules pertaining to Section 115JA are applicable to foreign companies that generate profits through their operations in India.

Who pays STT buyer or seller?

The STT must be paid by the company issuing the unlisted security within two months from the date of the transfer of such security. It is the responsibility of the recipient of the unlisted security to inform the company which issued such security of the transfer within 30 days from the date of transfer.

What is Section 44B of Income Tax Act?

Any non-resident engaged in business of operations of ships may opt for presumptive taxation under Section 44B of Income Tax Act. It is not mandatory, for a person who is engaged in the business of operations of ships, to follow the provisions of Section 44B.