Income-tax Act, 1961

Section - 115VZB - Avoidance of tax

G.-Provisions of this Chapter not to apply in certain cases

Avoidance of tax.

115VZB. (1) Subject to the provisions of this Chapter, the tonnage tax scheme shall not apply where a tonnage tax company is a party to any transaction or arrangement which amounts to an abuse of the tonnage tax scheme.

(2) For the purposes of sub-section (1), a transaction or arrangement shall be considered an abuse if the entering into or the application of such transaction or arrangement results, or would but for this section have resulted, in a tax advantage being obtained for-

(i)	-	a person other than a tonnage tax company; or
(ii)	-	a tonnage tax company in respect of its non-tonnage tax activities.

Explanation.-For the purposes of this section, "tax advantage" include,-

(i)

the determination of the allowance for any expense or interest, or the determination of any cost or expense allocated or a .... To read the full section download the app from Google Play store