Tuesday, July 15, 2014

MRO to get Respite? Industry needs Formal Policy Paper ASAP!

Neelam Mathews
July 15, 2014
A statement released today might bring a ray of hope to a fledgling industry. However, the government really needs to get that policy official- there has to be an end to adhocism.

Here goes-

The Minister of State for Civil Aviation, G.M. Siddeswara informed the Rajya Sabha today that though the Government has not prepared any formal policy on aircraft Maintenance, Repair and Overhaul (MRO) facilities, necessary constraints have been identified in consultation with the stakeholders which affect the growth of MRO activities. In this regard, the
Ministry of Finance has been requested to remove Service Tax on MRO work or provide a Service-tax holiday for ten years and Custom duty on import of consumables and tool-kits used by MROs as are applicable to airlines maintaining their own aircraft, along with providing faster custom clearance round-the-clock on all days. The Finance Ministry has also been requested to simplify the procedures of custom clearance and procedures specifying time-limits to consume spare parts. State Governments on the other hand, have been requested to remove VAT on spare parts sold by MROs. The Airports Authority of India has been asked to relax the stringent requirement of Royalty charged on MRO revenues and identify areas at airports where MRO activities can be started. 

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