Highlighting the ‘Cruise Bharat mission’, Union Minister of Ports, Shipping & Waterways, Sarbananda Sonowal informed the Parliament that there are currently six major ports that have cruise terminals in the country. The Cruise Bharat Mission targets to increase the country’s sea cruise tourists to 10 lakh by 2029. In a written reply provided by the Union Minister to parliament on Friday, he also mentioned that a presumptive taxation regime has been introduced for a non-resident who is engaged in the business of operating cruise ships.
Currently Vishakhapatnam Port in Andhra Pradesh, Mormugao Port in Goa, New Mangalore Port in Karnataka, Cochin Port in Kerala, Mumbai Port in Maharashtra & Chennai Port in Tamil Nadu are the major ports with cruise terminals.
“A presumptive taxation regime for a non-resident, engaged in the business of operation of cruise ships has been introduced by insertion of a new section 44BBC in the Income-tax Act, 1961 (the Act) vide Finance (No.2) Act, 2024,” read a statement by the ministry of Ports, Shipping and Waterways.
“Inter alia deems twenty percent of the aggregate amount received or receivable by or paid or payable to such assesse as profits and gains of such assesse from such business,” the ministry statement added.
Further, the ministry has also provided exemption of a foreign company from lease and rentals, effective from April 1, 2025.
“Exemption to income of a foreign company from lease rentals has been provided upto assessment year 2030-31, by insertion of a new clause (15B) in section 10 of the Act, if such foreign company and the non-resident cruise ship operator have the same holding company. These provisions are effective from 1st April, 2025,” the statement said.