"We want to encourage our own MRO business and so we are looking at some tax sops and easy customs regulations in the 2015-16 budget," official sources said here.
The Indian Maintenance, Repair and Operations (MRO) market is around 30 percent costlier on account of a 12 per cent service tax it charges from customers than those in places like Sri Lanka, Dubai, Hong Kong, Singapore and China.
Due to the present high-tax structure, the domestic carriers get their fleet overhauled in other countries due to lower costs there.
"On the one hand, this results in loss of foreign exchange and on the other a loss of business for the domestic units. If taxes such as service tax and VAT are taken care of by the government (abolished), the Indian MRO industry will also be able to attract business from other parts of the
world, besides getting the local clients," the sources said.
19/01/15 Jagran Post
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The Indian Maintenance, Repair and Operations (MRO) market is around 30 percent costlier on account of a 12 per cent service tax it charges from customers than those in places like Sri Lanka, Dubai, Hong Kong, Singapore and China.
Due to the present high-tax structure, the domestic carriers get their fleet overhauled in other countries due to lower costs there.
"On the one hand, this results in loss of foreign exchange and on the other a loss of business for the domestic units. If taxes such as service tax and VAT are taken care of by the government (abolished), the Indian MRO industry will also be able to attract business from other parts of the
world, besides getting the local clients," the sources said.
19/01/15 Jagran Post
