New Delhi: Government has waived off taxes on transfer of assets by Air India SPV Air India Assets Holding Limited, a move aimed at facilitating strategic disinvestment of the national carrier.
As a precursor to the sale of Air India, the government had in 2019 set up a special purpose vehicle – Air India Assets Holding Limited (AIAHL) for transfer of debt and non-core assets of Air India Group.
In a set of information, Central Board of Direct Taxes (CBDT) said no TDS Deduction under section 194Q shall be made in case of transfer of goods by Air India Limited to AIAHL.
Also, no TDS will be deducted under section 194-IA of the IT Act on payment made to Air India for transfer of immovable property to AIAHL.
The CBDT also stated that Air India shall not be treated as a ‘seller’ for the purposes of deduction of TCS in respect of transfer of goods to AIAHL.
It added that transfer of capital asset from Air India Limited to AIAHL under a scheme approved by the Central Government shall not be treated as transfer for the purpose of income tax.
Last week, the CBDT allowed new owners of erstwhile public sector companies to carry forward losses and close them against future profits.
This is an effort to make disinvestment deals of sick state-owned companies more attractive to strategic investors.
The government is looking to sell its 100 per cent stake in the state-owned national airline, which includes Air India’s 100 per cent stake and 50 per cent stake in AI Express Ltd. Air India SATS Airport Services Private Limited.
The strategic sale has reached a critical stage with September 15, the last date for financial bidding by potential buyers.
The government wants to complete the long-pending strategic sale of Air India in the current financial year. The disinvestment target for the current financial year has been kept at Rs 1.75 lakh crore.
As a precursor to the sale of Air India, the government had in 2019 set up a special purpose vehicle – Air India Assets Holding Limited (AIAHL) for transfer of debt and non-core assets of Air India Group.
In a set of information, Central Board of Direct Taxes (CBDT) said no TDS Deduction under section 194Q shall be made in case of transfer of goods by Air India Limited to AIAHL.
Also, no TDS will be deducted under section 194-IA of the IT Act on payment made to Air India for transfer of immovable property to AIAHL.
The CBDT also stated that Air India shall not be treated as a ‘seller’ for the purposes of deduction of TCS in respect of transfer of goods to AIAHL.
It added that transfer of capital asset from Air India Limited to AIAHL under a scheme approved by the Central Government shall not be treated as transfer for the purpose of income tax.
Last week, the CBDT allowed new owners of erstwhile public sector companies to carry forward losses and close them against future profits.
This is an effort to make disinvestment deals of sick state-owned companies more attractive to strategic investors.
The government is looking to sell its 100 per cent stake in the state-owned national airline, which includes Air India’s 100 per cent stake and 50 per cent stake in AI Express Ltd. Air India SATS Airport Services Private Limited.
The strategic sale has reached a critical stage with September 15, the last date for financial bidding by potential buyers.
The government wants to complete the long-pending strategic sale of Air India in the current financial year. The disinvestment target for the current financial year has been kept at Rs 1.75 lakh crore.
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