New Delhi. 30 October,2015. Maintenance, Repair and Overhaul (MRO) Association of India welcomes the Draft National Civil Aviation Policy as the catalyst to the growth of Civil Aviation in India to take the country from the current 9th position world-wide to No. 3 smoothly.
The NCAP has given the much needed boost to the Indian MRO industry with a number of reforms which include. The prime ones being:
- The provision under AIC 3 of 2010 of DGCA shall be reviewed to declare MRO ( aircraft servicing) as a separate category instead of clubbing with Ground Handling (GHA) for security procedures and remove restrictions on foreign registered aircraft for MRO work;
- Service Tax on output services of MRO will be zero-rated;
- To enable economies of scale, the period for which the spare parts imported by MROs can be stored tax-free shall be extended to 3 years;
- Airport royalty and additional levies on MRO service providers will be rationalised in consultation with Airport Operators;
- MoCA will persuade State Governments to make VAT zero-rated on MRO services
And the other important reform is Fiscal support
- It will be clarified that MRO, ground handling, cargo and ATF infrastructure co-located at an airport will also get the benefit of ‘infrastructure’ sector, with benefits under Section 80-IA of Income Tax Act.
The MRO Association of India wishes to put on records appreciation for the vision and perseverance of the Ministry of Civil Aviation and particularly, Secretary, R. N. Choubey and his team who held several meetings with the stakeholders and the various ministries for several months to bring this path-breaking reforms to fuel the growth the sunshine Indian MRO Industry.