115VV. (1) In the case of every company which has opted for
tonnage tax scheme, not more than forty-nine per cent of the net tonnage of the
qualifying ships operated by it during any previous year shall be chartered in.
(2) The proportion of net tonnage referred to in
sub-section (1) in respect of a previous year shall be calculated based on the
average of net tonnage during that previous year.
the purposes of sub-section (2), the average of net tonnage shall be computed
in such manner as may be prescribed in consultation with the Director-General
(4) Where the net tonnage of ships chartered in
exceeds the limit under sub-section (1) during any previous year, the total
income of such company in relation to that previous year shall be computed as
if the option for tonnage tax scheme does not have effect for that previous
(5) Where the limit under sub-section (1) had
exceeded in any two consecutive previous years, the option for tonnage tax
scheme shall cease to have effect from the beginning of the previous year
following the second consecutive previous year in which the limit had exceeded.
the purposes of this section, the term “chartered in” shall exclude a ship
chartered in by the company on bareboat charter-cum-demise