Shipping Corporation of India is moving forward with plans to boost Indian flagged tonnage by setting up a subsidiary in GIFT City, a special economic zone offering tax incentives. With approvals from the Ministry of Ports, Shipping & Waterways and NITI Aayog secured, the national carrier aims to benefit from the tax advantages provided in GIFT City. The central government has encouraged all state-run firms to establish units in the city to improve liquidity and support maritime trade growth.
To meet the trade demands and achieve goals outlined in Maritime Amrit Kaal Vision 2047, expanding Indian flagged tonnage is crucial. The International Financial Services Centres Authority (IFSCA) in GIFT City provides attractive incentives such as a tax holiday for ten of the first 15 years of operations, zero capital gains during this period, and exemptions from GST and stamp duty charges. Additional benefits include tax exemption on capital gains from ship transfers and income generated through royalty or interest from ship leasing.
With the support of the central government’s directives and the incentives offered in GIFT City by IFSCA, Shipping Corporation of India aims to strengthen its position in the shipping industry and contribute to boosting Indian flagged tonnage. By taking advantage of tax exemptions and incentives, the subsidiary in GIFT City can improve its financial standing and support the growth of maritime trade in India.
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