Quick Summary
CBDT notifies amendments in Income-tax Rules, 1962 to prescribe conditions for applicability of presumptive taxation regime for non-resident cruise ship operators
As a measure to promote investment and employment, Finance (No. 2) Act, 2024 inter alia provided a presumptive taxation regime for non-residents, engaged in the business of operation of cruise ships. Further, exemption has been provided for any income of a foreign company from lease rentals of cruise ships, received from a related company which operates such ship or ships in India. Applicability of this presumptive taxation regime is subject to the conditions, as prescribed.
The conditions which have been prescribed for non-resident, engaged in the business of operation of cruise ships provide that such non-resident shall:-
- Operate a passenger ship having a carrying capacity of more than 200 passengers or length of 75 meters or more, for leisure and recreational purposes and having appropriate dining and cabin facilities for passengers;
- Operate such ship on scheduled voyage or shore excursion touching at least two sea ports of India or same sea ports of India twice;
- Operate such ship primarily for carrying passengers and not for carrying cargo; and
- Operate such ship as per the procedure and guidelines if any, issued by the Ministry of Tourism or Ministry of Shipping.
Official copy of the notification has been attached
FAQ :
The notification introduces a presumptive taxation regime for non-resident cruise ship operators to promote investment and employment.
Non-residents engaged in the business of operating cruise ships, provided they meet specific conditions related to ship capacity, voyage, and purpose.
Operators must run passenger ships with a capacity of over 200 passengers or a length of 75 meters or more, operate on scheduled voyages touching Indian ports, primarily carry passengers, and adhere to guidelines from the Ministry of Tourism or Shipping.
Yes, foreign companies receive an exemption for income from lease rentals of cruise ships if the related company operates the ship in India.
The rules apply to passenger ships operated for leisure and recreational purposes, featuring dining and cabin facilities.
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