Wait...
  1. Home >
  2. Export Import News >
  3. Economy News >
  4. Govt forms committee to rationalise additional taxes on Aviation Turbine Fuel >
  5. Govt forms committee to rationalise additional taxes on Aviation Turbine Fuel

Online Export Import Data Search

Recent Searches: No Recent Searches
Complete Training Video : Click Here

Govt forms committee to rationalise additional taxes on Aviation Turbine Fuel.


Date: 19-08-2019
Subject: Govt forms committee to rationalise additional taxes on Aviation Turbine Fuel
The Aviation Ministry has formed a committee to rationalise additional taxes that airlines have to pay while uplifting Air Turbine Fuel (ATF) at airports across India, according to senior government officials.

Currently, airlines have to pay charges such as 'throughput charges', 'into plane charges' and 'fuel infrastructure charges' when they take ATF at any airport for their planes.

"These charges are taxed multiple times as they are billed in a circuitous manner," said a senior government official.

A second government official said that to develop a direct billing mechanism between airline companies and airport operators - so that these multiple taxes can be removed - the Ministry of Civil Aviation has formed a committee comprising representatives from airlines, airport operators, oil companies, among others.

This committee is expected to submit its report soon, the second official added.

As per government estimates, if a direct billing mechanism is implemented, airlines would be able to save around Rs 400 crore per year.

In India, ATF accounts for almost 40 percent of any airline's total expenditure. Therefore, any taxation on ATF always has a huge impact on airline companies.

Explaining the matter, the first official quoted above stated,"Take the example of billing for throughput charges, which is done by the airport operator to the oil company. In turn, oil company passes on the charges by billing airlines. However, due to such convoluted billing process, taxes such as GST and excise duty and VAT is added on to throughput charges."

The official said that at the Delhi airport, if the throughput charges levied by the airport operator is of Rs 100 only, the airline ends up paying Rs 164 as it is paying "tax on tax" which includes GST, excise duty and VAT.

Had the throughput charges been invoiced directly by the airport operators to the airlines, the latter would have got the Input Tax Credit for the GST paid and there will be no application of excise duty or VAT, the official explained.

"The other charges - fuel infrastructure charges and into plane charges - are also being billed similarly in circuitous manner leading to tax on tax," the official said.

Source: moneycontrol.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 08-02-2020
Notification No. 08/2020-Customs
Seeks to exempt specified goods from Health Cess imposed on the medical devices falling under heading 9018 to 9022 in terms of clause 139 of the Finance Bill, 2020.

Date: 06-02-2020
Notification No.11/2020 - Customs (N.T.)
Exchange Rates Notification No.11/2020-Custom (NT) dated 06.02.2020

Date: 02-02-2020
Notification No. 06/2020 – Customs
Seeks to further amend notification No. 24/2005-Customs, dated the 1st March, 2005 so as to exclude copper and articles thereof from the exemption provided to raw materials use for manufacturing of ITA goods specified therein the notification

Date: 02-02-2020
Notification No. 07/2020 – Customs
Seeks to further amend notification No. 25/2005-Customs, dated the 1st March, 2005 so as to exclude copper and articles thereof from the exemption provided to raw materials use for manufacturing of ITA goods specified therein the notification.

Date: 02-02-2020
Notification No. 08/2020-Customs
Seeks to exempt specified goods from Health Cess imposed on the medical devices falling under heading 9018 to 9022 in terms of clause 139 of the Finance Bill, 2020.

Date: 02-02-2020
Notification No. 09/2020 – Customs
Seeks to further amend notification No. 11/2018-Customs, dated the 2nd February, 2018 in order to revise the levy of Social Welfare Surcharge on specified goods.

Date: 02-02-2020
Notification No. 10/2020-Customs
Seeks to further amend notifications mentioned in the Column (2) of the Table of the notification No. 10/2020-Customs, dated the 2nd February, 2020 so as to align the notification mentioned in Column (2) with the new tariff lines created as per Finance Bill, 2020.

Date: 02-02-2020
Notification No. 11/2020-Customs
Seeks to further amend notification No. 82/2017-Customs dated the 27th October, 2017 so as to omit a redundant entry at S. No. 31A.

Date: 02-02-2020
Notification No. 12/2020-Customs
Seeks to rescind certain customs notifications which have become redundant or entries in these notifications are being merged with other similar notifications granting exemptions.

Date: 02-02-2020
Notification No. 01/2020-Customs
Seeks to further amend notification No. 50/2017-Customs dated 30th June, 2017 so as to prescribe effective rate of Basic Customs Duty (BCD)



Exim Guru Copyright © 1999-2020 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001