Income-tax Act, 1961

Operating ships.

115VB. For the purposes of this Chapter, a company shall be regarded as operating a ship if it operates any ship ⁵⁷[or inland vessel, as the case may be,] whether owned or chartered by it and includes a case where even a part of the ship ⁵⁷[or inland vessel, as the case may be,] has been chartered in by it in an arrangement such as slot charter, space charter or joint charter:

Providedthat a company shall not be regarded as the operator of a ship ⁵⁷[or inland vessel, as the case may be,] which has been chartered out by it on bareboat charter-cum-demise terms or on bareboat charter terms for a period exceeding three years.