my client is engaged in maritime services. he can either opt tonnage tax or he can choose normal income tax. can any one clearly in simple language explain me in brief about tonnage tax? also i would like to know the difference between tonnage income and non tonnage income and how they will be taxable.
Swaroop
Dear Swaroop,
The scheme of tonnage taxation is nothing but a Presumptive taxation like the one we have u/s 44AD/AE,etc
The income is calculated based on the tonnage capacity of a qualifying ship in addition to number of days the ship was in operation during the year.
This business has to be considered as a separate business from other in the same way as u/s 44AD/AE.
For more details pls go through the relevant provisions then u can ask ur specifc doubts.
CAclubindia
