INDIA Law and Practice Contributed by: Nitin Sarin and Vistasp Irani, Sarin & Co
2.3.4 Registration of Leases With the Domestic Aircraft Registry An aircraft taken on lease by an Indian operator from a foreign lessor cannot be registered in India unless the applicant has submitted a copy of the lease to the DGCA. Leases are not subject to any consent from any government entity. A copy of the lease agreement, the electronic CA-28 aircraft registration form and other documents shall be filed for registering aircraft with the DGCA. This process may take anywhere from two to four weeks. Before a lessee may import an aircraft into India, it must seek the consent of the DGCA. The DGCA first grants “in principle” approval for the import of the air - craft, subject to satisfaction regarding the safety of the aircraft intended to be imported, and then accords its final approval. While no consent is required as a prerequisite to the execution of a lease, the ”no objec - tion” of the DGCA is required before the import of an aircraft on lease will be permitted. 2.3.5 Requirements for a Lease to Be Valid and Registrable There is no specific form in which a lease must be registered on the aircraft registry. If it is executed in a different language, a lease needs to be translated into English. Furthermore, a notarised copy of the lease would be valid and registrable on the aircraft registry. 2.3.6 Taxes/Duties Payable for Registering a Lease There is a fee for the registration of an aircraft on the Indian aircraft registry based on the aircraft’s weight. No other taxes or duties are payable for registering a lease. 2.3.7 Registration of Aircraft in Alternative Countries Aircraft habitually based in India must be registered in the country. There are very few circumstances in which a foreign-registered aircraft is permitted to oper - ate habitually in India, with the most common being in relation to a wet lease (when a foreign-registered aircraft is permitted to operate in India). Wet leases are also only permitted in the country in exceptional circumstances.
2.3.8 Requirements for Documents Concerning Registration Copies of the following documents must be uploaded on the DGCA’s online platform, e-GCA, along with the completed CA-28 aircraft registration form (notarisa - tion of the documents is recommended): • customs clearance certificate/bill of entry of the aircraft; • certificate of deregistration from the previous regis - tering authority; • evidence to the effect that the aircraft has been purchased or is wholly owned by the applicant; • an affidavit stating that the aircraft has been pur - chased from a previous owner, if applicable; • a copy of the lease agreement if the aircraft is taken on a dry lease; • a document of registration of the company and the names, addresses and nationalities of the directors if the aircraft is owned by a company or corpora - tion; • a copy of the import licence issued by the Direc - torate General of Foreign Trade or permission for the import of aircraft issued by the Ministry of Civil Aviation/DGCA; • in cases where the aircraft has been mortgaged/ hypothecated, the owner/operator shall submit their consent for this and the papers to this effect; and • letters from the owner, lessor, operator and mort - gagee (if applicable) confirming the names and nationality of their directors, and requesting or consenting to (as the case may be) the aircraft registration. 2.4 Lessor’s Liabilities 2.4.1 Tax Requirements for a Foreign Lessor A foreign lessor may be required to pay income or other taxes upon leasing an aircraft or engine to an Indian lessee, depending on the domicile of the for - eign lessor and the provisions of the specific double taxation avoidance treaty with the country of domicile of the foreign lessor and India. Ordinarily, where a les - see is required to withhold tax but does not do so, the onus would remain with the lessee; the responsibility would not shift to the foreign lessor.
256 CHAMBERS.COM
Powered by FlippingBook