Centre notifies new Income-Tax Rules for non-resident cruise ship operators

The Central Board of Direct Taxes (CBDT) has notified amendments successful the Income-Tax Rules to prescribe conditions for applicability of presumptive taxation authorities for non-resident cruise vessel operators, according to an authoritative connection issued connected Wednesday.

As a measurement to beforehand concern and employment, the Finance Act, 2024 provided a presumptive taxation authorities for non-residents, engaged successful the concern of cognition of cruise ships.

Further, exemption has been provided for immoderate income of a overseas institution from lease rentals of cruise ships, received from a related institution which operates specified ships successful India.

Applicability of this presumptive taxation authorities is taxable to the conditions that person been prescribed.

These conditions prescribed for non-residents, that the rider vessel being operated indispensable person a carrying capableness of much than 200 passengers oregon magnitude of 75 metres oregon more, for leisure and recreational purposes and having due eating and compartment facilities for passengers.

The vessel being operated has to besides beryllium connected scheduled voyage oregon enactment excursion touching astatine slightest 2 oversea ports of India oregon aforesaid oversea ports of India twice.

It is besides mandatory that the vessel being operated is chiefly for carrying passengers and not for carrying cargo.

Besides, the vessel has to beryllium operated arsenic per the process and guidelines issued by the Ministry of Tourism oregon Ministry of Shipping.

These amendments were projected successful the Union Budget to beforehand the cruise-shipping manufacture with an purpose to marque India an charismatic cruise tourism destination, by attracting planetary tourists to cruise shipping successful the state and to popularise cruise shipping with home tourists.

The Centre has besides launched a five-year Cruise Bharat Mission, aiming to boost cruise tourism successful India with a people of 1 cardinal passengers and instauration of 400,000 jobs by 2029.

The ngo includes mounting up of a dedicated fund, easing of cabotage regulations and fiscal incentives.

Union Minister for Ports Shipping and Waterways Sarbananda Sonowal had stated astatine the clip of the motorboat that cruise shipping has a tremendous imaginable successful the country, but has remained unexplored for long.

The three-phase ngo has acceptable the extremity to make world-class infrastructure and alteration maturation of cruise tourism and maritime trade.