New Delhi: The income tax department has notified amendments in I-T rules to prescribe conditions for applicability of presumptive taxation regime for non-resident cruise ship operators.

As a measure to promote investment and employment, the government had in the July Budget, 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.

As per the amendment to I-T Rules, 1962, notified on January 21, the applicability of this presumptive taxation regime is subject to conditions, including that the non-resident, engaged in the business of operation of cruise ships operate a passenger ship having a carrying capacity of more than 200 passengers or length of 75 metres or more, for leisure and recreational purposes and having appropriate dining and cabin facilities for passengers.

The conditions also include that the non-resident operate such ship on scheduled voyages or shore excursions touching at least two sea ports of India or the same sea ports of India twice and operate such ship primarily for carrying passengers and not for carrying cargo.