India’s aviation industry may have to bear an additional tax burden of up to Rs 15,000 crore annually once the Goods and Services Tax is implemented, top industry executives have told the finance ministry.
Under the current indirect tax regime, the industry has to pay only about Rs 3,600 crore every year, according to industry estimates, while its annual revenue is pegged at Rs 60,000 crore.
The additional tax burden may push airlines, most of which have turned profitable, into losses again, coming as it does at a time when global fuel prices are flaring up.
In a meeting with revenue secretary Hasmukh Adhia on Saturday, the airline executives said the industry will have to bear additional taxes on ticket sales, import of aircraft and aircraft parts, lease rentals, and transfer of spares and goods within the country.
The executives have also asked for the fuel to be brought under the GST regime--petroleum products are outside its ambit in the proposition--so airlines can claim input credit on the same. But the finance ministry is unlikely to agree to that demand for now.
20/12/16 Anirban Chowdhury/Economic Times
To Read the News in full at Source, Click the Headline
Under the current indirect tax regime, the industry has to pay only about Rs 3,600 crore every year, according to industry estimates, while its annual revenue is pegged at Rs 60,000 crore.
The additional tax burden may push airlines, most of which have turned profitable, into losses again, coming as it does at a time when global fuel prices are flaring up.
In a meeting with revenue secretary Hasmukh Adhia on Saturday, the airline executives said the industry will have to bear additional taxes on ticket sales, import of aircraft and aircraft parts, lease rentals, and transfer of spares and goods within the country.
The executives have also asked for the fuel to be brought under the GST regime--petroleum products are outside its ambit in the proposition--so airlines can claim input credit on the same. But the finance ministry is unlikely to agree to that demand for now.
20/12/16 Anirban Chowdhury/Economic Times
0 comments:
Post a Comment