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.
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
India's #MRO poised to be the 3rd largest aviation market by 2020. Intl. #MRO conference begins today in #Bangalore pic.twitter.com/7TCyChRiW0
— Press Release Watch (@PrReleaseWatch) November 30, 2015
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.
