Govt notifies capital asset transfer from AI to AIAHL

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Tribune News Service

New Delhi, September 11

The government has issued an order notifying transfer of capital assets from Air India Ltd to Air India Assets Holding Ltd (AIAHL) as part of its plan to go for sale of 100 per cent stake in the national carrier.

In another order, the government has exempted the national carrier from tax collected at source provisions under the Income Tax Act on the sale of goods, including shares, to the special purpose vehicle (SPV). In the orders, the Central Board of Direct Taxes has specified that the AIAHL would not be considered as “buyer” in case of transfer of goods by Air India as part of the plan, and that Air India will not be considered as ‘seller’ during transfer of goods to the SPV.

It further said, “It also exempted the national carrier from tax collected at source provisions.”