Special provision for computing profits and gains of business of operation of cruise ships in case of non-residents [ Section 44BBC Read with rule 6GB ] - International Taxation - Income Tax

Special provision for computing profits and gains of business of operation of cruise ships in case of non-residents [ Section 44BBC w.e.f. 01.04.2025 Inserted vide Finance (No. 2) Act, 2024 read with Rule 6GB inserted vide Notification no. 09/2025 dated 21.01.2025 ] Applicability Applicability of this presumptive taxation regime is subject to the conditions, as prescribed. The conditions which have been prescribed for non-resident, engaged in the business of operation of cruise ships provide that such non-resident shall:- In the case of an assessee, being a non-resident, engaged in the business of operation of cruise ships subject to conditions as prescribed under rule 6GB:- (i) 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; (ii) operate such ship on scheduled voyage or shore excursion touching at least two sea ports of India or same sea ports of India twice; (iii) operate such ship primarily for carrying passengers and not for carrying cargo; and (iv) operate such ship as per the procedure and guidelines if any, issued by the Ministry of Tourism or Ministry of Shipping. Chargeable under head Income form such business chargeable to tax under the head Profits and gains of business or profession. Deemed Profit Taxable A sum equal to 20% of the aggregate of the amounts of (a) the amount paid or payable to the assessee or to any person on his behalf on account of the carriage of passengers; and (b) the amount received or deemed to be received by or on behalf of the assessee on account of the carriage of passengers. Without any deduction of expenditure contained in sections 28 to 43A. Exemption available for next 5 year Incomes not included in total income [ Section 10(15B) w.e.f. 01.04.2025 inserted vide Finance (No.2) Act, 2024 ] Any income of a foreign company from lease rentals, by whatever name called, of cruise ships, received from a specified company which operates such ship or ships in India, where such foreign company and the specified company are subsidiaries of the same holding company, and such income is received or accrues or arises in India for any relevant assessment year beginning on or before the 1st day of April, 2030. For the purposes of this clause, - (a) specified company means any company, other than a domestic company which operates cruise ships in India and opts to pay tax in accordance with the provisions of section 44BBC; (b) holding company , in relation to a foreign company or a specified company, means a company of which such companies are subsidiary companies; (c) subsidiary company or subsidiary , in relation to a holding company, means a company in which the holding company exercises or controls more than one-half of the total share capital either at its own or together with one or more of its subsidiary companies.