System for administration of Minimum Training Requirement for Tonnage Tax Company in terms of Section 115VU of Income Tax Act, 1961 and guidelines issued vide Notification published in Gazette vide S.O. 1436(E) dated 30.12.2004 as amended in Gazette Notif…

1. Minimum Training Requirement Increase

The minimum training requirement has increased from 1:10 to 1.5:10 of the Minimum Safe Manning document of the vessel, effective from 01.04.2007.

• Additional 0.5:10 block: A nominal penalty of Rs. 1 per manday will be levied for the shortfall in meeting the minimum training requirement under this block for FY 2007-08.
• Penalty for FY 2007-08: The provisions of para 4(ii) will apply for non-compliance of minimum training requirement of 1:10 for FY 2007-08.

2. Administrative Cost and Penalty Changes

Training fees have been abolished. Administrative cost and penalty for non-fulfillment of MTR have been re-fixed.

• Administrative Cost: For FY 2007-08, Rs. 750/- per month per trainee for ships >500 GRT, Rs. 225/- for ships <500 GRT. From FY 2008-09 onwards, Rs. 500/- per month per trainee, paid in advance for six months.
• Penalty for non-compliance: Rs. 5000/- per shortfall manday for ships >500 GRT, Rs. 1500/- for ships <500 GRT, and Rs. 1000/- for approved PILOT vessels <500 GRT.

3. Stipend for Trainee Officers

Minimum stipend of Rs. 5000/- per month remains unchanged. Companies may augment stipend at their discretion.