Sunday, November 29, 2015

What Indian #MRO industry wants from Govt.

1. The provision under AIC 3 of 2010 of DGCA shall be reviewed to declare MRO (aircraft servicing) as a separate category instead of clubbing with Ground Handling (GHA) for security procedures and remove restrictions on foreign registered aircraft for MRO work;

2. Service Tax on output services of MRO will be zero‐rated;

3. To enable economies of scale, the period for which the spare parts imported by MROs can be stored tax‐free shall be extended to
3 years;

4. Airport royalty and additional levies on MRO service providers will be rationalised in consultation with Airport Operators; 5. MoCA will persuade State Governments to make VAT zero‐rated on MRO services

And the other important reform is Fiscal support:-  

1. MRO, ground handling, cargo and ATF infrastructure co‐located at an airport will also get the benefit of ‘infrastructure’ sector, with benefits under Section 80‐IA of Income Tax Act.

 2. The icing on the cake is the ‘Infrastructure’ status for MRO and other sub-sectors (Clause 11, NCAP 2015).

3. This entitles the MRO industry for priority lending, cheaper loans and exemption from corporate tax for ten years.