Union Govt spare taxes on transfer of assets by Air India

This move focuses at easing the strategic disinvestment of the national carrier

The union government has spare taxes on transfer of assets by Air India to SPV Air India Assets Holding.

 

This move focuses at easing the strategic disinvestment of the national carrier.

 

The Union government as a parent for the national carrier in 2019 had set up a special purpose vehicle called Air India Assets Holding Limited (AIAHL) for transfer of debt and non-core goods of the Air India group.

 

The Central Board of Direct Taxes (CBDT) in a set of notices has stated that no TDS shall be deducted under section 194Q in case of transfer of goods by Air India Limited to AIAHL.

 

And, also TDS shall not be removed under the section 194-IA of IT Act on payments made to Air India for transfer of any immovable property to AIAHL.

 

The CBDT says that the airlines would not be contemplate as 'seller' for the purposes of removal of TDS for with regard to any transfer of assets by it to AIAHL.

 

CBDT said, "Transfer of capital asset under plan passed by the central government from Air India to AIAHL would not be referred as transfer for the purpose of income tax".

 

The CBDT had also approved last week, the new owners of the former public sector firms to carry forward the losses and set it off against future profits.

 

This is an effort towards making disinvestment deals of weak state-owned companies for more attractive for strategic investors.

 

The central government is seeking to sell 100 percent of its equity stake in the state-owned national airline, including Air India's 100 percent shareholding in AI Express and 50 percent shareholdingin Air India SATS Airport Services.

 

The sale has reached the crucial phase with September 15 being the last date for putting in all financial bids by potential buyers.

 

The union government wants to complete their long pending strategic sale this fiscal year. The disinvestment target for this fiscal year has been set up at rupees 1.75 lakh crore.The union government has spare taxes on transfer of assets by Air India to SPV Air India Assets Holding.

 

This move focuses at easing the strategic disinvestment of the national carrier.

 

The Union government as a parent for the national carrier in 2019 had set up a special purpose vehicle called Air India Assets Holding Limited (AIAHL) for transfer of debt and non-core goods of the Air India group.

 

The Central Board of Direct Taxes (CBDT) in a set of notices has stated that no TDS shall be deducted under section 194Q in case of transfer of goods by Air India Limited to AIAHL.

 

And, also TDS shall not be removed under the section 194-IA of IT Act on payments made to Air India for transfer of any immovable property to AIAHL.

 

The CBDT says that the airlines would not be contemplate as 'seller' for the purposes of removal of TDS for with regard to any transfer of assets by it to AIAHL.

 

CBDT said, "Transfer of capital asset under plan passed by the central government from Air India to AIAHL would not be referred as transfer for the purpose of income tax".

 

The CBDT had also approved last week, the new owners of the former public sector firms to carry forward the losses and set it off against future profits.

 

This is an effort towards making disinvestment deals of weak state-owned companies for more attractive for strategic investors.

 

The central government is seeking to sell 100 percent of its equity stake in the state-owned national airline, including Air India's 100 percent shareholding in AI Express and 50 percent shareholdingin Air India SATS Airport Services.

 

The sale has reached the crucial phase with September 15 being the last date for putting in all financial bids by potential buyers.

 

The union government wants to complete their long pending strategic sale this fiscal year. The disinvestment target for this fiscal year has been set up at rupees 1.75 lakh crore.

India Scanner News Network

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