CBDT Amends Income-tax Rules to Define Presumptive Taxation Conditions for Non-Resident Cruise Ship Operators
By: Admin
Date: January 22, 2025
Categories: CBDT Notification, Press Release
Reading Time: 4 Min
Introduction: New Tax Regime for Cruise Operators
The Finance (No. 2) Act, 2024, introduced a presumptive taxation regime designed to promote investment and employment in India’s cruise ship industry. This regime targets non-resident cruise ship operators and offers tax exemptions for foreign companies earning lease rentals from related companies operating in India.
However, this taxation regime comes with specific conditions, detailed in CBDT Notification No. 9/2025.
Key Conditions for Non-Resident Cruise Ship Operators
1. Passenger Ship Operations
To qualify, non-resident entities must operate passenger ships that:
- Have a carrying capacity of over 200 passengers or a length of 75 meters or more.
- Offer leisure activities such as dining and cabin facilities.
2. Scheduled Voyages
Operators must ensure their ships:
- Run on scheduled voyages or shore excursions.
- Touch at least two Indian sea ports or revisit the same Indian port twice.
3. Passenger-Centric Focus
The ships must primarily transport passengers and not cargo.
4. Compliance with Guidelines
All operations should adhere to the guidelines issued by the Ministry of Tourism or the Ministry of Shipping.
Notification Details: CBDT No. 9/2025
The CBDT Notification No. 9/2025, issued under Section 295 and Section 44BBC of the Income-tax Act, 1961, introduces amendments to the Income-tax Rules, 1962.
Key Highlights of Rule 6GB:
- Applicable only to non-resident cruise ship operators.
- Reinforces compliance with prescribed conditions.
- Provides clear guidelines to ensure operators meet eligibility for tax benefits.
Impact on India’s Cruise Tourism Sector
This amendment reflects India’s commitment to fostering growth in the cruise tourism industry. By offering a simplified taxation regime, the government aims to attract global investments, boost tourism, and create more jobs in this specialized sector.
