If a company doing shipping business go for tonnage tax scheme instead of normal taxation, as per act that company can't go back to normal taxation upto 10 years from the year in which opt the tonnage tax scheme. Is it correct?? if not, then how that company can go back to normal taxation with in 10 years from the year in which opt the tonnage tax scheme, especially where company incurring losses continuously??
Pls explain me with suitable sections as per Income Tax act.
If a shipping Company opt for Tonnage taxation then its income will be taxable as per Tonnage tax scheme for 10 years. However if the company does not fullfills the conditions as prescribed under the act, any time then TTS will not be applicable to that company and the income of that company will be taxable as per normal scheme. As soon as the company become ineligible for TTS, then for the next 10 years also that company will not be able to eligible of TTS.
i agree with suraj..
CAclubindia
