| Of the 30 shipping companies under the Indian National Shipping Association (INSA), which represents 90 per cent of Indian tonnage, 20 have already opted for the new regime. |
| "Even though INSA expects all its members to apply, some companies may be holding back for want of clarity on rules. The government had to issue four notifications relating to in-chartering norms for bulk and container cargo, training requirements and format for audit forms that have not been prescribed till now," an INSA member said. |
| Companies that had already applied include the Shipping Corporation of India (SCI), GE Shipping and Varun Shipping, he added. |
| The official said the crucial notification was the one relating to the formula specifying what constitutes the share of in-chartering in the total shipping tonnage of a company. |
| According to tonnage tax specifications, he said, any company which chartered out more than 49 per cent of its tonnage would be disqualified from being under the tonnage tax regime. |
| He added that the specifications for in-chartering would be important for smaller companies, which would have to decide on opting for the new regime. |
| If a company set up before September 2004 fails to decide by Saturday, it will be not allowed to opt for the new regime for the next 10 years. |
| In addition, a company that fails to comply with the provisions after opting for the regime, will also be debarred for a decade. |
| Uncertainty reigns, even for companies that have applied. For instance, the INSA official pointed out that companies like SCI, GE Shipping that applied in October, had not received an acknowledgment from the Central Board of Direct Taxes. |
| The provisions relating to the tonnage tax specify that the CBDT should pass an order approving or rejecting the request to be under the regime, within a month of receiving the application. |
| The INSA official said of all its members only Toulani Shipping had received an acceptance. |
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