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, said a Ministry of Finance communique.
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 metres 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.
* Operate such ship as per the procedure and guidelines, if any, issued by the Ministry of Tourism or Ministry of Shipping.
The communique added that CBDT Notification No. 9/2025 dated 21.01.2025 has been published in https://egazette.gov.in/
Source: Exim News Service: New Delhi, Jan. 23