Operating lease guarantees for aircraft allowed with FEMA no-objection, subject to board resolution and co-terminus guarantee. AD Category I banks may convey a no objection from the foreign exchange angle for Indian importers to issue corporate guarantees in favour of overseas lessees for operating leases of aircraft, aircraft engines and helicopters, provided there is a board resolution authorising the guarantee (naming authorised signatories) and the guarantee period is co terminous with the lease; the no objection is limited to foreign exchange compliance and does not substitute for other statutory approvals.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Operating lease guarantees for aircraft allowed with FEMA no-objection, subject to board resolution and co-terminus guarantee.
AD Category I banks may convey a no objection from the foreign exchange angle for Indian importers to issue corporate guarantees in favour of overseas lessees for operating leases of aircraft, aircraft engines and helicopters, provided there is a board resolution authorising the guarantee (naming authorised signatories) and the guarantee period is co terminous with the lease; the no objection is limited to foreign exchange compliance and does not substitute for other statutory approvals.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
