Mumbai: Aircraft maintenance repair and overhaul units (MRO)s want the government to review the crippling tax structure forcing domestic carriers to send planes abroad for repairs.
"We are seeking a level playing field. Airlines do not have to pay duties for overhaul of components and engines at foreign MROs but the similar work in India is subject to service tax, sales tax and other duties. We are subsidising foreign companies,'' said Bharat Malkani chairman of Max Aerospace on sidelines of an industry forum in Mumbai on Tuesday.
Malkani's company has tied up with Air France-KLM to set up components repair plant in Nagpur. According to Malkani the tax structure and lack of business had led to closure of half of of Indian MROs across in the last two-three years.
Even the customs duty waiver on import of spare parts announced in the budget earlier this year has failed to cheer MRO owners.
25/09/12 Aneesh Phadnis/Business Standard
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"We are seeking a level playing field. Airlines do not have to pay duties for overhaul of components and engines at foreign MROs but the similar work in India is subject to service tax, sales tax and other duties. We are subsidising foreign companies,'' said Bharat Malkani chairman of Max Aerospace on sidelines of an industry forum in Mumbai on Tuesday.
Malkani's company has tied up with Air France-KLM to set up components repair plant in Nagpur. According to Malkani the tax structure and lack of business had led to closure of half of of Indian MROs across in the last two-three years.
Even the customs duty waiver on import of spare parts announced in the budget earlier this year has failed to cheer MRO owners.
25/09/12 Aneesh Phadnis/Business Standard
