Thulasidas pilots extensions of exemption on aircraft lease

New Delhi: Air-India chairman and managing director V Thulasidas on Tuesday said the airline industry still required leased aircraft and the government should continue exemption of withholding tax on lease rentals of aircraft beyond the fiscal-end.
Speaking at conference on GE ecomagination, Thulasidas, though not quantifying the impact that withholding tax would have on A-I, said, “Even our purchase agreement of the 68 Boeing aircraft may have some leasing options in that. Withholding tax exemption is important, as leasing will continue even if we get a new fleet of aircraft.”
The finance ministry has decided to re-introduce withholding tax on lease rentals of aircraft from the next financial year. Lease rental of an Airbus A320 family type or a Boeing 737 family of aircraft is $20 million. The civil aviation ministry and the federation of Indian airlines had sought extension of exemption of tax on lease rentals on aircraft under Section 10 (15A) of the Income Tax Act 1961.
21/02/07 Financial Express

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Categories: air india feb 2007, General Aviation feb 2007