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Tonnage Tax GN Circulars
Key Changes and Requirements
1. Minimum Training Requirements (MTR)
Tonnage Tax Companies must train specified numbers of Indian seafaring officers to meet MTR. MTR is calculated based on the number of ships operated and their tonnage.
- Calculation: MTR = (Ship days operated * Complement) / 10 for owned/chartered ships; MTR = (Net Tonnage / Net Tonnage Factor) * Ship days operated for slot/space charters
- Inclusion: Shortfall of the preceding financial year is included in the current year's MTR.
2. Training Commitment
Companies must submit an annual Basic Training Commitment (BTC) and periodic Annual Adjustments (AA) to meet their MTR.
- BTC: Submitted annually by 30th April, detailing training obligation for each vessel. Provisional approval is given within 30 days.
- AA: Submitted within 30 days of the end of each year, updating training obligation based on actual performance and changes in vessel numbers.
Trainee officers pay training fees and administrative costs, with the latter shared equally with the company. Stipends are paid by the company.
3. Payment in Lieu of Training (PILOT)
If a company cannot meet training requirements due to vessel types, it must pay 10 times the training fees in addition to the fees for the shortfall.
Companies must ensure they have made genuine efforts to recruit trainee officers. Failure to do so may result in penalties.
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