Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: cpt :: articles on VAT and GST in India :: empanelment :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: due date for vat payment
Sales Tax »
 Amendment to Additional Sales Tax Act unconstitutional: High Court
 Maharashtra will soon achieve Rs one lakh cr sales tax : CM Devendra Fadnavis
 CBEC chief bats for minimal exemptions for India Inc under GST
 Issuance of Free Sale & Commerce Certificate to Merchant Exporters
 Why model GST law does not give confidence to exporting community
 State governments tighten their grip on sales tax holidays
 Income tax dept charts plan to broaden national taxpayer base
 Sale of shares on which STT is payable is exempt from tax
  Sale of Government of India Treasury Bills by Auction
 New tax treatment of sale of unlisted shares brings more certainty, less litigation
 Simpler tax laws, low rate can help get more people to pay up

Focus on rationalising sales tax on ATF: CII
February, 07th 2012

The new civil aviation policy that is being framed should address key issues like the sales tax the states levy on jet fuel, route dispersal guidelines and investments by foreign airlines in domestic carriers, the Confederation of Indian Industry (CII) has recommended.

"A comprehensive policy direction is needed to address the prevailing crisis and lay a path for future growth," said CII director general Chandrajit Banerjee.

The development comes as the government is working on a new civil aviation policy which will promote investments and setting up of the required infrastructure for the sector.

"We have about five months to complete the process," Civil Aviation Secretary Nasim Zaidi had said in December 2011.

According to the industry lobby, the new policy should include a waiver of state sales tax on jet fuel which accounts from anywhere between three and 33 percent.

Addition of state sales tax increases the overall cost of jet fuel in India by 50 percent more than anywhere in the world.

The fuel price, which accounts for over 50 percent of an airline's operating cost, has landed major carriers like Kingfisher Airlines, Jet Airways and SpiceJet in losses.

The industry body also called for allowing an investment cap of 49 percent by international airlines in domestic carriers.

"A liberal foreign direct investment regime would pave the way for foreign airlines to participate in India's aviation sector and strengthen it," Banerjee said.

The development comes even as the civil aviation ministry's proposal to allow foreign capital by international airlines in cash-strapped domestic carriers may come up for the cabinet's approval before parliament's budget session in March.

"We will send a proposal in regard to foreign airlines entering domestic carriers through FDI (foreign direct investment) to the commerce ministry and from there to the cabinet," Civil Aviation Minister Ajit Singh said on Jan 31.

"This may happen before the budget."

Currently, foreign airlines are not allowed to directly invest in Indian carriers for security reasons. However, 49 percent of FDI is allowed by non-airline players.

On Jan 17, a group of ministers (GoM) headed by Finance Minister Pranab Mukherjee agreed to draft a cabinet note proposing a 49 percent cap on FDI by foreign carriers' in domestic airlines.

Before this, various government departments has proposed different investment caps, from 24 percent to 26 percent. The commerce ministry's department of industrial policy and promotion (DIPP) had suggested a 26 percent cap.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions