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?
also please note, the aircraft is intended for Charter and Non Scheduled Operations (NSOP) usage. not for personal use.
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 - firstname.lastname@example.org or 9818295840
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. Regards, Rohit R Sharma BCOM, ACA, LLB - GEN, CERT. FAFP
I think the same is being already answered