Tax concessions parts inputs welcomed by Indian MROs

The Indian government has announced tax concessions on imports of spare parts and testing equipment for aircraft repair work. The government has also extended the time period for consumption or installation of the parts or equipment from three months to one year. The news has been welcomed by the country’s Maintenance Repair and Overhaul (MRO) industry, which is a nascent development phase, but it continues to demand more help. The industry wants a reduction in the service tax from 12.5%, along with an import duty including a countervailing duty of 18.5% to a uniform tax rate of 2.5%.