Thousands of young Indians work aboard luxury international cruise liners operating across the Mediterranean, Caribbean, and Alaska. Does Indian tax law treat cruise crew the same as merchant ship officers?
The Answer: Yes, If CDC or Maritime Contract Exists
As long as you are employed on an eligible passenger cruise vessel operating outside India and you spend 182 days or more outside Indian territory, your maritime earnings are 100% exempt from Indian tax under Section 10(4)(ii).
Tips and Gratuities
Cash tips and onboard bonuses remitted to your Indian NRE account are also considered part of foreign employment remuneration and share the same exempt status as long as your NRI status is secured.