Taking forward the central government’s plans to boost Indian flagged tonnage, Shipping Corporation of India has announced plans to set up a subsidiary in GIFT City, potentially benefitting from a slew of tax incentives offered through the special economic zone. Necessary approvals from the Ministry of Ports, Shipping & Waterways and the NITI Aayog have been obtained by the national carrier in this regard.
In fact, the central government has directed all the state run firms to head towards the GIFT City and set up their units there to improve their liquidity position. Indian flagged tonnage should be drastically expanded to meet the growing trade needs and also meet the targets set in Maritime Amrit Kaal Vision 2047.
The International Financial Services Centres Authority (IFSCA) based in GIFT City offers tax holiday for ten of the first 15 years of operations with zero capital gains during the tax holiday period. It also offers exemption from GST, no stamp duty charges for a period of five years and capital gains are not made on transfer of ships by an IFSC unit, thus offering complete tax exemption. In addition exemptions can also be availed on income generated through royalty or interest paid on account of leasing of ships.
