(1)A tonnage tax company shall, subject to and in accordance with the provisions of this section, be required to credit to a reserve account (hereafter in this section referred to as the Tonnage Tax Reserve Account) an amount not less than twenty per cent. of the book profit derived from the activities referred to in clauses (i) and (ii) of sub-section (1) of section 115-VI in each previous year to be utilised in the manner laid down in sub-section (3):Provided that a tonnage tax company may transfer a sum in excess of twenty per cent. of the book profit and such excess sum transferred shall also be utilised in the manner laid down in sub-section (3).Explanation. - For the purposes of this section, "book profit" shall have the same meaning as in the Explanation to sub-section (2) of section 115-JB so far as it relates to the income derived from the activities referred to in clauses (i) and (ii) of sub-section (1) of section 115-VI.
