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<h1>Shipping Companies Face Strict 49% Charter-In Limit Under New Tonnage Tax Rules with Potential Tax Benefit Penalties</h1> A legal analysis of India's tonnage tax regime reveals new provisions governing charter-in limits for shipping companies. The legislation caps chartered tonnage at 49% of net vessel capacity, with strict consequences for non-compliance. Companies exceeding this threshold lose tonnage tax benefits for the year, and persistent breaches result in permanent scheme disqualification. The provisions aim to encourage domestic shipping infrastructure investment while providing operational flexibility, maintaining alignment with international maritime taxation practices.
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