Government Gives Tax Exemption On Air India's Assets Transfer To Special Purpose Vehicle

Government has given tax exemption to Air India from transferring belongings to its particular function automobile

In a transfer which might facilitate strategic disinvestment of Air India, the Centre has given tax exemption on switch of belongings by the nationwide provider to the particular function automobile (SPV) Air India Assets Holding Limited.

The Central Board of Direct Taxes (CBDT) in a notification stated that there will not be any tax deductible at supply (TDS) minimize in case of switch of products by the nationwide provider to the SPV. It additional added that no TDS could be deducted in case of switch of immovable property by Air India to the SPV.

The notification additional stated that Air India is not going to be thought of as "seller" for the aim of TCS deduction associated to switch of products to Air India Assets Holding Limited.

As a part of initiating the method of Air India sale, the federal government had arrange the SPV in 2019 for switch of debt and non-core belongings of the Air India group.

The CBDT notification knowledgeable that any switch of capital belongings underneath the plan accepted by the federal government from the nationwide provider to the SPV is not going to be thought to be switch for the aim of earnings tax.

The authorities is searching for to promote 100 per cent of its stake in Air India, which additionally consists of the nationwide provider's 100 per cent shareholding in Air India Express Limited and 50 per cent in Air India SATS Airport Services Private Limited.

The strategic sale has reached the essential part with the September 15 being the final date for placing in monetary bids by potential consumers.

The authorities needs to finish the lengthy pending Air India strategic sale this fiscal.