• Aircraft lease

An Indian Pvt Ltd company leased an aircraft from a UAE based corporation, similar to a lot of other airlines and charter operators in India lease airplanes from foreign companies.
Its not a lease purchase nor a lien agreement. Nor its financing agreement. its simple monthly lease irrespective of the usage or hours flown.
We believe we simply need to remit the lease amount of for example $90,000 per month to the UAE company as per agreement.
Does it attracts any TDS? does it attracts any other taxes in India?
Asked 2 years ago in Income Tax from Mumbai, Maharashtra
Dear Sir,

You have to deduct TDS under section 195. No other income tax liabilities in India.

I will get back to you in rate of TDS.

Please let us know if you need any further assistance on the above.

Thanks and Regards
CA Abhishek Dugar
Abhishek Dugar
CA, Mumbai
2934 Answers
123 Consultations

5.0 on 5.0

Dear Sir , We have addressed similar issue particularly  for the UAE . In the India UAE DTAA agreement , income from  business operation of the person engaged in the  Aircraft engaged in the international traffic is not covered .  However there is limited a agreement for this purpose , under which they have covered the income from the operation of aircraft engaged in the international traffic .  GSR -969 dated 08/11/89 .

Any further assistance we can provide you . Please mail me - prakash@psc.co.in
or 9818295840
Prakash Sinha
CA, New Delhi Area, India
120 Answers
16 Consultations

4.9 on 5.0

Dear Sir,

Considering the nature of transaction TDS is applicable in the same. But to decide on the rate, you need to refer the DTAA agreement and check under which class does the transaction specifically fall.

Trust this clarifies your query. 

Feel free to get back/ call back for any further clarifications. 

Thanking You. 

Rohit R Sharma
Rohit R Sharma
CA, Mumbai
2104 Answers
91 Consultations

5.0 on 5.0

I think the same is being already answered
Shyam Sunder Modani
CA, Hyderabad
1408 Answers
95 Consultations

5.0 on 5.0

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