Section 115VJ Income Tax Act 2025 Treatment of common costs.

⁵⁰ 115VJ. (1) Where a tonnage tax compa­ny also carries on any business or activity other than the ton­nage tax business, common costs attributable to the tonnage tax business shall be determined on a reasonable basis.

(2) Where any asset, other than a qualifying ship, is not exclu­sively used for the tonnage tax business by the tonnage tax company, depreciation on such asset shall be allocated between its tonnage tax business and other business on a fair proportion to be determined by the Assessing Officer, having regard to the use of such asset for the purpose of the tonnage tax business and for the other business.