The Revenue Department is looking deeper into the proposed Rs 2,058 crore Jet-Etihad deal to identify the beneficial owners and check whether it is structured in a way to evade taxes.
"Revenue department is looking into the clause of beneficial ownership of the Jet-Etihad deal. The Department will have to see the tax implications of the deal whether it is meant to evade tax," a finance ministry official said.
The Finance Ministry has already sought more clarity on the clauses concerning effective control of the new company and has written to market regulator Sebi for a report on its ownership structure.
"As per the shareholder agreement and governance agreement submitted by Jet, the final ownership goes into the foreign hands," the official claimed.
The Foreign Investment Promotion Board (FIPB) had last month deferred a decision on the deal, which is the largest foreign investment proposal in the Indian aviation sector, and sought clarity on control and ownership.
15/07/13 PTI/Daily News & Analysis
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"Revenue department is looking into the clause of beneficial ownership of the Jet-Etihad deal. The Department will have to see the tax implications of the deal whether it is meant to evade tax," a finance ministry official said.
The Finance Ministry has already sought more clarity on the clauses concerning effective control of the new company and has written to market regulator Sebi for a report on its ownership structure.
"As per the shareholder agreement and governance agreement submitted by Jet, the final ownership goes into the foreign hands," the official claimed.
The Foreign Investment Promotion Board (FIPB) had last month deferred a decision on the deal, which is the largest foreign investment proposal in the Indian aviation sector, and sought clarity on control and ownership.
15/07/13 PTI/Daily News & Analysis
