February 20, 2021 4:49:06 am
The International Financial Services Centres Authority (IFSCA) on Friday issued the framework to facilitate the setting up of aircraft leasing business at the International Financial Services Centre at GIFT City in Gujarat.
Under this framework, entities engaged in the business of providing aircraft, helicopter, engines or any other parts can engage in operating lease for an aircraft lease arrangement which includes lease, sale, purchase, novation, transfer or any other transactions related to aircraft lease at IFSC.
Such entities have to register themselves with IFSCA.
Interested firms can set up operations at IFSC by way of a company, or a Limited Liability Partnership or a Trust or any other form specified by IFSCA. Such entities have to maintain at all times a minimum capital of USD 200,000 or its equivalent in freely convertible foreign currency.
The firms should be ready to pump in more capital based on the scale of business.
Tapan Ray, MD & Group CEO, GIFT City stated in an official release, “The framework on aircraft operating lease would pave the way for offshore leasing entities to serve India’s hinterland demand from GIFT IFSC. The incentives announced in the union budget 2021 coupled with the formation of the framework shows the commitment of the Government of India towards making GIFT IFSC a hub for aircraft leasing & financing activities. The participants who were waiting for the final regulations to come out can now actively consider setting up their base in GIFT IFSC.”
Union Finance Minister Nirmala Sitharaman, in the Budget presented earlier this month, had rolled out tax incentives for companies that are willing to set up a base at the IFSC in GIFT City.
Tushar Sachade, Partner, PwC India said in a statement issued here, “The regulatory framework issued by the IFSC Authority coupled with the Budget announcements on the tax front pertaining to the aircraft leasing sector will definitely give wings to create a sustainable eco-system for operations of aircraft leasing and financing sector in Gift City. This probably is India’s first firm step to become an eventual alternative to other offshore jurisdictions. We will soon see this business soaring from GIFT city”
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