March 14, 2020 was a milestone day in the history of Indian Maintenance, Repair and Overhaul (MRO) Industry. On this day, the Goods and Services Tax (GST) Council at its 39th meeting took some concrete steps to boost the Indian MRO Industry with its recommendation to reduce GST on MRO services in respect to aircraft from 18 per cent to five per cent with full ITC and to change the place of supply for B2B MRO services to the location of the recipient. This change is likely to assist in setting up of MRO services in India. Domestic MRO will also get protection due to five per cent tax paid under section 3(7) of the Customs Tariff Act, 1975 on most imported goods including those sent abroad for repairs, as this tax is available for credit. This comes into effect from April 01, 2020.
MRO Association of India, a not-for-profit professional body, has been engaging with the Ministries of the Government of India to seek this benefit since the introduction of GST in India on July 1, 2017. Earlier, the Association was able to procure a Zero rate of Custom Duties from the Ministry of Finance in its General Budget for Financial Year 2012-13.
The Indian MRO Industry is still in its nascent stage. India has a pool of talent in both experienced and youth categories of human resources. The country also offers the cheapest manhour cost of $43, the lowest in the region, but the high taxation regime was eroding its MRO business. With the much need relief provided by the Government, the Indian MRO Industry now feels that it can turn the tide in its favour.
Denne historien er fra April 2020-utgaven av SP’s Aviation.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra April 2020-utgaven av SP’s Aviation.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
'ZEITENWENDE' - THE TURNING POINT!
In an exclusive interaction, Chief of Luftwaffe (German Air Force) Lieutenant General Ingo Gerhartz speaks with Consulting & Contributing Editor Manish Kumar Jha, in New Delhi on a comprehensive range of issues concerning German forces' modernisation, NATO's role, military acquisitions, and Germany's presence in the Indo-Pacific building a new era of military cooperation with India.
REWRITE THE RULE BOOK
The success of the Bhartiya Vayuyan Vidheyak Bill 2024 hinges on the Ministry of Civil Aviation's ability to translate its vision into reality through efficient administration and regulation.
DRIVING SUSTAINABLE AND ADVANCED AVIATION TECHNOLOGIES
Over seven decades of FIA, the airshow still remains significant, underscoring the industry's collective drive towards sustainability, Al-based solutions, advanced air mobility, strategic partnerships, significant orders and groundbreaking technologies
STEERING ECONOMIC GROWTH AND SOCIOECONOMIC DEVELOPMENT
The UDAN scheme has been a game-chan¢ger for India’s aviation industry, democratising air travel, stimulating economic development, and fostering regional connectivity becoming a cornerstone of India’s aviation strategy
THE HIGH-FLYING PATH TO A $5 TRILLION ECONOMY
A robust commercial aviation sector is propelling the Indian economy forward by serving as a catalyst for economic growth, driving tourism, trade, employment, and infrastructure development.
ROLE OF THE IAF IN NATION BUILDING
IAF's global reach to ensure India's ability to conduct defence diplomacy and humanitarian operations, highlight its crucial role in safeguarding and supporting the nation way beyond the traditional military functions.
EXPANDING INDIA'S GALACTIC HORIZONS
India's space economy is set for significant growth as the nation continues to be a major global player, driven by momentum in the private sector, new industry entrants, substantial investments, and supportive policy initiatives.
PRATT & WHITNEY EXPANDS INDIA OPERATIONS
New center will employ 150 aerospace experts and drive customer service and operations support
ADVANCING THE INDIAN AIR FORCE TRAINING CAPABILITIES
A new chapter has been introduced in the history of the Indian Air Force (IAF) with the inauguration of the Weapon Systems School (WSS) by Air Chief Marshal V.R. Chaudhari, Chief of the Air Staff (CAS), at Air Force Station Begumpet, Hyderabad on July 1, 2024.
PIPER J-3 CUB: TRUSTED TRAINER
When the Civilian Pilot Training (CPT) programme was established in anticipation of US involvement in World War II, the Piper J-3 Cub was chosen as the primary training aircraft. Ultimately, 75 per cent of all CPT pilots trained on a Cub