115V Definitions

[CHAPTER XII-G

SPECIAL PROVISIONS RELATING TO INCOME  OF SHIPPING COMPANIES

A.-Meaning of certain expressions

Definitions.

115V. In this Chapter, unless the context otherwise requires,-

          (a)  "bareboat charter" means hiring of a 1[“ship or inland vessel, as the case may be,”] for a stipulated period on terms which give the charterer possession and control of the ship, including the right to appoint the master and crew;

          (b)  "bareboat charter-cum-demise" means a bareboat charter where the ownership of the 1[“ship or inland vessel, as the case may be,”] is intended to be transferred after a specified period to the company to whom it has been chartered;

          (c)  "Director-General of Shipping" means the Director-General of Shipping appointed by the Central Government under sub-section (1) of section 7 of the Merchant Shipping Act, 1958 (44 of 1958);

          (d)  "factory ship" includes a vessel providing processing services in respect of processing of the fishing produce;

          (e)  "fishing vessel" shall have the meaning assigned to it in clause (12) of section 3 of the Merchant Shipping Act, 1958 (44 of 1958);

2[“(ea) “inland vessel” shall have the same meaning as assigned to it in clause (q) of section 3 of the Inland Vessels Act, 2021;”.]

          (f)  "pleasure craft" means a 1[“ship or inland vessel, as the case may be,”] of a kind whose primary use is for the purposes of sport or recreation;

          (g)  "qualifying company" means a company referred to in section 115VC;

          (h)  "qualifying ship" means a 1[“ship or inland vessel, as the case may be,”] referred to in section 115VD;

           (i)  "seagoing ship" means a ship if it is certified as such by the competent authority of any country;

          (j)  "tonnage income" means the income of a tonnage tax company computed in accordance with the provisions of this Chapter;

          (k)  "tonnage tax activities" means the activities referred to in sub-sections (2) and (5) of section 115V-I;

           (l)  "tonnage tax company" means a qualifying company in relation to which tonnage tax option is in force; 

         (m)  "tonnage tax scheme" means a scheme for computation of profits and gains of business of operating qualifying ships under the provisions of this Chapter.

Note:-

1.Substituted by The Finance Act, 2025 dated 29.03.2025 w.e.f.01.04.2026.

(i) in clauses (a), (b), (f) and (h), for the words,

“ship”

shall be substituted namely:––

“ship or inland vessel, as the case may be,”

2.Insterted by The Finance Act, 2025 dated 29.03.2025 w.e.f.01.04.2026.