The IFSC Authority is wooing the Adani Group, Tata Group, ArcelorMittal and GMS Inc, among others, by offering a tax structure that the shipping industry say is “equal to or better than Singapore.”, reports maritime gateway.
Tax friendly regime
A new tax-friendly regime to boost India’s shipping tonnage is gaining traction in a short span with the Ripley Group, Bothra Group, Star Matrix, Alphard Maritime Group and Propel Shipping.
Ten year tax holiday
Being treated as an offshore special economic zone in India, IFSC has tax and regulatory benefits – the goods and services tax (GST) does not apply for import of vessels, entities operating from IFSC are considered non-resident from FEMA perspective facilitating ease of doing business and ECB norms are not applicable to IFSC entities, making borrowings easier.The most attractive feature, though, is the ten-year tax holiday available to IFSC companies.
“IFSC entities can take a tax holiday in any ten of the first 15 years. After that they can stay in the IFSC as a tonnage tax company and enjoy the same tax benefits that are currently available to fleet owners operating in the domestic tariff area (DTA) regime,” the executive stated.
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Source : Maritime gateway
