Conditions for applicability of presumptive tax for non-resident cruise ship operators

CBDT notifies Rule 6GB to prescribe conditions for applicability of presumptive taxation regime u/s 44BBC 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 CBDT vide Notification No. 9/2025 dated 21.01.2025 has prescribed the following conditions for applicability of presumptive taxation regime for non-resident cruise ship operators:-

(a) 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;

(b) Operate such ship on scheduled voyage or shore excursion touching at least two sea ports of India or same sea ports of India twice;

(c) Operate such ship primarily for carrying passengers and not for carrying cargo; and

(d) Operate such ship as per the procedure and guidelines if any, issued by the Ministry of Tourism or Ministry of Shipping.

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