New Delhi: The government has released taxes on the transfer of assets by Air India to SPV Air India Asset Holding Ltd, a movement that aims to facilitate strategic disinvestment of national carrier.
As a precursor of Indian air sales, the government in 2019 has established a special purpose vehicle – Air India Asset Holding Ltd (Aiahl) – for debt transfers and non-core assets of the Indian water group.
In a set of notifications, the direct tax center (CBDT) said that no TDS was deducted by section 194Q in the case of transfer goods by Air India Ltd to Aiahl.
Also, no TDS is deducted based on the 194-I-I-I-T part that works on payments made for Air India to transfer property that does not move to Aiahl.
The CBDT also said that Indian water would not be considered as ‘seller’ for the purposes of TCS reduction because it was related to the transfer of goods by Aiahl.
It is said that the transfer of capital assets based on the plan approved by the Central Government of Air India Ltd.
to Aiahl will not be considered a transfer for income tax purposes.
Last week, CBDT has enabled new owners of Manstan public sector companies to advance losses and cancel profits in the future.
This is an effort to make a disinvestment agreement from state-owned companies that are more attractive to strategic investors.
The government tries to sell 100 percent of its shares in state-owned national airlines, including 100 percent of 100 percent share ownership at AI Express Ltd and 50 percent in Air India Sats, Pvt Ltd Airport Service.
Strategic sales have achieved an important phase with September 15 to the last date to submit a financial offer by potential buyers.
The government wants to complete the strategic sales of the old Indian air to be delayed by this fiscal.
The target disinvestment for fiscal has been set at Rs 1.75 Lakh Crore.