CBDT Introduces Presumptive Income Tax Rule 6GB: Conditions for Non-Residents Engaged in Cruise Ship Operations [Read Notification]

The Ministry of Finance, through the Central Board of Direct Taxes ( CBDT ), issued Notification No. 9/2025 dated January 21, 2025, introducing amendments to the Income-tax Rules, 1962, to provide clarity on the applicability of presumptive taxation for non-resident cruise ships operators. The new rules effective immediately, are designed to streamline tax computation for such operators under Section 44BBC of the Income-tax Act, 1961.

Important conditions include the operation of passenger vessels with a minimum capacity of 200 passengers or a length of 75 meters or more, primarily for leisure and recreation. These ships must feature appropriate dining and cabin facilities and adhere to scheduled voyages or shore excursions, visiting at least two Indian seaports or the same port twice.

1. Rule Title and Effectiveness:

• The amendment is officially called the Income-tax (First Amendment) Rules, 2025.
• It becomes applicable immediately upon its publication in the Official Gazette on January 21, 2025. This means the rules are now legally binding.

2. New Rule Addition to Income-tax Rules, 1962:

• A new provision titled 6GB is added after Rule 6GA. This provision specifies special rules for calculating the profits and gains of businesses engaged in the operation of cruise ships, particularly for non-resident entities (foreign companies or individuals operating such businesses).

3. Specific Conditions for Cruise Ship Operators (Rule 6GB):

Non-resident entities involved in cruise ship operations must meet the following conditions:

(i) Passenger Ship Standards: The cruise ship should either have the capacity to carry more than 200 passengers or Be 75 meters or longer in length. The ship must be primarily operated for leisure and recreational purposes. It should provide dining and cabin facilities suitable for passengers, ensuring a comfortable experience.

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(ii) Voyage Requirements: The cruise ship must operate on scheduled voyages or shore excursions. These voyages must include stops at least two different seaports in India, or the same port twice, meaning the ship returns to its starting point.

(iii) Passenger-Focused Operations: The ship must be primarily used for transporting passengers, not for carrying cargo or freight. This emphasizes the focus on tourism and leisure travel.

(iv) Compliance with Guidelines: The ship’s operations must comply with any procedures or guidelines issued by The Ministry of Tourism, or The Ministry of Shipping to ensure adherence to industry standards, safety, and service quality.

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