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Saturday, September 18, 2021

Govt exempts TDS/TCS on switch of belongings by Air India to SPV

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NEW DELHI: The federal government has exempted taxes on switch of belongings by Air India to SPV Air India Belongings Holding Ltd, a transfer aimed toward facilitating strategic disinvestment of the nationwide provider.
As a precursor to Air India sale, the federal government in 2019 had arrange a particular objective car — Air India Belongings Holding Ltd (AIAHL) — for switch of debt and non-core belongings of the Air India group.
In a set of notifications, the Central Board of Direct Taxes (CBDT) has mentioned that no TDS shall be deducted beneath part 194Q in case of switch of products by Air India Ltd to AIAHL.
Additionally, no TDS shall be deducted beneath part 194-IA of I-T Act on funds made to Air India for switch of immovable property to AIAHL.
The CBDT additionally mentioned that Air India wouldn’t be thought of as ‘vendor’ for the needs of deduction of TCS for with regard to switch of products by it to AIAHL.
It mentioned that switch of capital asset beneath plan accepted by central authorities from Air India Ltd to AIAHL wouldn’t be thought to be switch for the aim of earnings tax.
Final week, the CBDT had allowed new homeowners of erstwhile public sector corporations to hold ahead losses and set it off in opposition to future earnings.
That is an effort in the direction of making disinvestment offers of ailing state-owned companies extra engaging for strategic buyers.
The federal government is searching for to promote 100 per cent of its stake within the state-owned nationwide airline, together with Air India’s 100 per cent shareholding in AI Specific Ltd and 50 per cent in Air India SATS Airport Companies Pvt Ltd.
The strategic sale has reached the essential section with the September 15 being the final date for placing in monetary bids by potential patrons.
The federal government needs to finish the lengthy pending Air India strategic sale this fiscal. The disinvestment goal for this fiscal has been set at Rs 1.75 lakh crore.

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