New Delhi: Finance Minister P.Chidambaram Thursday proposed to increase the time period for installation of parts used by maintenance, repair and overhaul (MRO) sector of the aviation business from three months to one year.
Current provisions mandate an MRO to stock spares only for a period of three months after which it has to pay the custom duty.
Similarly, spares have to be accounted for and it has to be ensured that they are used only for the aircraft for which they have been imported for.
"The aircraft manufacture, repair and overhaul (MRO) industry is at a nascent stage. Encouraging the MRO sector will generate employment besides other benefits," Chidambaram said, presenting the union budget 2013-14 in the Lok Sabha.
According to the memorandum explaining the provisions in the Finance Bill, the time period for installation of parts and testing equipments imported for MRO of aircrafts by units engaged in such activities is being extended from three months to one year.
28/02/13 IANS/New Track India
