India's National Shipowners Association has put forward a package of proposals to revamp the nation's tax structure for the sector in a bid to generate big investment and improve competitiveness. The association is seeking a five per cent reduction in customs duty on the import of vessels, and for shipowners to be exempt from paying customs duty on the import of repair materials, to lower the cost of repair work and boost the import of high-quality repair equipment. The body is also calling for the scrapping of the tax on input services, as well as amendments to the tax legislation, according to a report from IRIS Business Services (India).
On the direct tax front, the association expects an amendment / clarification to cover book profit on the sale of qualifying ships under section115VI (1)(i) by incorporating surplus on sale of qualifying ships. Moreover, it has appealed the removal of the tax on profit on the sale of ships, the statement said. Finally, it is demanding that shipping companies be exempt from the withholding tax on charter hire payments to foreign shipowners.