Prohibition to opt for tonnage tax scheme in certain cases

An eligible company that, on its own, chooses out of the tonnage tax scheme, fails to comply with the provisions of sections 115VT, 115VU, or 115VV, or whose option has been excluded from the tonnage tax scheme pursuant to an order made under sub-section (1) of section 115VZC, shall not be eligible to opt for the tonnage tax scheme for a period of ten years following the date of opting out, failing to comply, or order, as applicable.

There is a good article on section 80g.

Timing during which the tonnage tax option is still in effect-

When a tonnage tax scheme option is exercised, it is taken into account from the assessment year pertinent to the year before the option was exercised. Once an option has been authorised, it is valid for ten years from the date of the implementation.

Get more knowledge about section 12a.

An alternative for a tonnage scheme should expire on the assessment year applicable to the prior year in which the qualifying firm loses its eligibility, a violation of the rule governing the transfer of profits to the Tonnage Tax Reserve Account and the minimal training required for tonnage companies occurs, the qualifying firm provides a written statement to the Assessing Officer stating that the provisions of this chapter may not apply to it and that the tonnage tax company is exempt from the tonnage tax system pursuant to section 115VZC.

And according to the other clause of this Act, the company's profit and gain from running eligible ships must be calculated.

A tonnage tax corporation must adhere to the minimal training standards set by the Director General of Transport and published by the Central Government in the Official Gazette.

You can get a beneficial article on 80g limit.