Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: empanelment :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: TDS :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: form 3cd
 
 
News Headlines »
 Have you missed the due date of filing your Tax Returns?
 What you should know about income tax refunds
 Income tax scrutiny to remain limited despite surge in returns filed
 Regarding Filing of online return for first quarter of 2017-18 extension upto 01-09-2017
 Deadline to file returns extended to 28 August for biz with transitional
 GST input tax credit form
  How to rectify income tax returns
 Govt extends tax exemption for industry in North East, hilly states
 Should you file revised Income Tax returns; find out here
 Tax Deducted at Source (TDS) in Goods & Services Tax (GST)
 10 companies that blamed GST for soft June quarter

Airlines face rough weather, no tax sop on ECB interest
February, 23rd 2007

The finance ministry has rejected a request from civil aviation ministry and airlines for tax exemption on interest payments made to service external commercial borrowings (ECB). The civil aviation ministry had argued for the exemption as it would reduce acquisition costs of 111 aircraft being purchased by public sector carriers, Air India and Indian. Private airline companies too have asked for similar concessions. With the country expected to buy over 480 planes at a cost of Rs 1,35,000 crore in five years, the exemption was expected to lower the aircraft acquisition costs for airlines significantly.

Tax exemption on interest payments on ECBs was available till June 2001 under Section 10(15) (iv)(c) of the Income-Tax Act, 1961. The aviation ministry and airline companies had argued that the withdrawal of this exemption has made cost of aircraft acquisition expensive.

Airlines as well as the civil aviation ministry had demanded restoration of the tax exemption but the finance ministry has rejected the plea, government sources said. North Block has also said no to postponement of withholding tax on aircraft lease rentals. In the case of mergers & acquisitions, the finance ministry is willing to provide relief to the proposed merger of Air India with Indian but the facility will not be available to other companies.

The finance ministry has said that there is no justification for the government to subsidise foreign borrowings as it leads to countrys indebtedness, the source said. The ministry has argued that the withdrawal of this exemption was recommended by the Shome Committee.

The finance ministry has further suggested that such concessions should be provided only through double taxation avoidance treaties (DTAAs) on reciprocal basis. The ministry has said that there is no rationale for reinstating Section 10(15)(iv)(c) to provide tax exemption on ECBs.

The finance ministry is also likely to withdraw the exemption on withholding tax for lease rentals of aircraft, they said. The levy was kept in abeyance to allow Indian and Air India to expand their fleets through leased aircraft. The finance ministry has now indicated the exemption may be scrapped, which may lead to rise in air fares as the airline firms are expected to pass on the increased costs to customers.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Article Management Solutions System Article Management Software S

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions