Charter operators to pay Rs 1,000cr as taxes for aircraft imported under NSOP

Charter operators might have to cough up Rs 1,000-Rs 1,200 crore as taxes and penalty for aircraft that they have imported under the Non-Scheduled Operators Permit (NSOP) even though they are being put on personal use.
However, this is based on the assumption that all the 50-odd aircraft and helicopters, which have been bought after April 2007 — when the differential import duty regime for charters and aircraft for personal use was imposed by the government — have violated the regulations. But the numbers would be much less as many would have been bought by regular private charter operators, flying schools and even the state government.
A private aircraft can cost Rs 20 crore to Rs 160 crore and about 80 per cent of the private aircraft are second hand, which are much cheaper than the market price. And some of them would have also imported helicopters which are much cheaper. So the average list price of an aircraft is Rs 85 crore-Rs 90 crore.
Companies importing private aircraft have to pay a Customs duty of 3 per cent, a countervailing duty of 16 per cent and an additional duty of 4 per cent totalling 23 per cent. However, they are exempted from all these taxes if they are importing the aircraft for scheduled or non-scheduled (charter) operations.
10/07/08 Business Standard

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Categories: Indian Aviation- In General Jul 2008