FOREIGN DIRECT INVESTMENT FOR AIRCRAFTS : ECONOMY

FOREIGN DIRECT INVESTMENT FOR AIRCRAFTS : ECONOMY

NEWS: Government permits 100% Foreign Direct Investment via automatic route for aircraft Maintenance, Repair and Overhaul (MRO)

 

WHAT’S IN THE NEWS?

  1. Extended Export Period: Period for exporting goods imported for repairs extended from six months to one year; re-import period under warranty extended from three to five years (Union Budget 2024-25).
  2. New MRO Guidelines (1st September, 2021): Abolished royalties and increased transparency in land allotments at AAI airports.
  3. Reduced GST: GST on MRO reduced from 18% to 5% with full Input Tax Credit from 1st April, 2020.
  4. Export Treatment: Transactions sub-contracted by foreign OEMs/MRO to domestic MRO treated as 'exports' with zero-rated GST from 1st April, 2020.
  5. Customs Duty Exemption: Exempted customs duty on tools and tool kits.
  6. Simplified Clearance: Simplified clearance processing of parts.
  7. FDI: 100% Foreign Direct Investment permitted via automatic route for MRO.

 Source : https://pib.gov.in/PressReleasePage.aspx?PRID=2040688