Synopsis
The CBDT has revised Income-Tax Rules, establishing conditions for a presumptive taxation regime aimed at non-resident cruise ship operators. This move aims to boost investment and employment while promoting India as a prime cruise tourism destination.Key Takeaways
- New presumptive taxation regime for non-resident cruise operators.
- Exemptions for foreign companies leasing cruise ships.
- Specific conditions for vessel eligibility.
- Government aims for 1 million cruise passengers by 2029.
- Three-phase mission to enhance cruise tourism infrastructure.
New Delhi, Jan 22 (NationPress) The Central Board of Direct Taxes (CBDT) has announced revisions in the Income-Tax Rules, detailing the conditions for the applicability of a presumptive taxation regime for non-resident cruise ship operators, as per an official communication released on Wednesday.
In an effort to stimulate investment and employment, the Finance Act, 2024 has introduced a presumptive taxation framework for non-resident entities engaged in the operation of cruise vessels.
Additionally, exemptions have been granted for any income derived by a foreign firm from lease rentals of cruise ships, provided such income is received from an affiliated company that manages cruise operations in India.
The applicability of this presumptive taxation regime is contingent upon specific conditions.
Among these stipulated conditions for non-residents, the passenger vessel must have a capacity exceeding 200 passengers or a length of 75 meters or more, intended for leisure and recreational purposes, complete with suitable dining and cabin amenities for guests.
The cruise vessel must also embark on scheduled voyages or shore excursions that call at a minimum of two Indian sea ports, or revisit the same ports twice.
Furthermore, it is essential that the vessel is primarily designated for passenger transport rather than cargo.
In addition, operations must adhere to the procedures and guidelines established by the Ministry of Tourism or Ministry of Shipping.
These amendments were proposed in the Union Budget to enhance the cruise shipping sector, aspiring to position India as a premier cruise tourism destination by attracting international visitors and promoting cruise travel among local tourists.
The government has also initiated a five-year Cruise Bharat Mission, aiming to elevate cruise tourism in India with a target of 1 million passengers and the creation of 400,000 jobs by 2029.
This mission encompasses the establishment of a dedicated fund, the relaxation of cabotage regulations, and the introduction of financial incentives.
Union Minister for Ports Shipping and Waterways Sarbananda Sonowal remarked at the launch that cruise shipping holds significant potential in the country, which has remained largely untapped.
The mission is structured into three phases, focusing on developing world-class infrastructure and fostering the growth of cruise tourism and maritime trade.
