CONTENT PREVIEW
Industry

India reforms tax regime for aerospace MRO

15 March 2020
Follow

The Indian Ministry of Finance (MoF) has announced tax reforms for the aerospace maintenance, repair, and overhaul (MRO) sector.

In a statement on 14 March, the MoF said the move, which applies to both commercial and military aircraft, is “likely to assist in [the] setting up of MRO services in India”.

Under the reforms, the goods and services tax (GST) rate on aerospace MRO services will be reduced from 18% to 5% with “full ITC”, said the MoF. ITC stands for input tax credit, a means to reduce tax liability.

In addition, the MoF said that it will “change the place of supply for B2B (business-to-business) MRO services to the location of the recipient”.

Want to read more? For analysis on this article and access to Jane’s unrivalled data and insight, learn more about our subscription options at janes.com/products





(139 of 517 words)
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT