Finance ministry wants curbs on corporate jets

New Delhi: The finance ministry has asked the aviation regulator to plug a loophole that permits companies to avoid paying import duty on corporate jets, depriving the exchequer of revenue worth hundreds of crores.
According to current guidelines, no Customs duty is levied on an aircraft registered overseas if it is brought into India for the purpose of 'a flight' and leaves the country's shores in less than six months.
The ministry feels Indian corporates are misusing this provision by registering their planes overseas through foreign arms, predominantly using them in India, and then flying them to a neighbouring country for a few hours before the sixmonth period. This allows them to evade payment of import duty, which varies from 6.6% for non-scheduled operators to 18.5% for aircraft meant for personal use.
10/01/12 Deepshikha Sikarwar/Economic Times

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Categories: Indian Aviation- In General Jan 2012