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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« VAT (Value Added Tax) »
 No Cenvat credit admissible on outward transportation services from factory to buyer’s premises
  Filing of reconciliation return in form 9 for the year 2016-17
 Govt may send notice to 162 companies; ask for VAT returns
 Cenvat Credit Is Not Income Liable To Be Taxed
 Cos wanting to claim VAT refund on employees' foreign stay can get professional help
 Regarding disposal of pending form DVAT 04 & 07 Form Applications
 Disposal of pending Form DVAT 04 & Form DVAT 07 applications: regarding
 Cenvat Credit Rules, 2017 III Part
 VAT phased out in TS
 Cenvat Credit Rules, 2017 II Part
 Cenvat Credit Rules, 2017 – Part I

Andhra Pradesh government slashes VAT on ATF to 1%
September, 22nd 2014

In a major boost to the civil aviation sector in Andhra Pradesh, the state government has slashed the rate of tax on aviation turbine fuel (ATF) to 1% from 16% on Thursday. According to GO MS No 310, the revenue department stated that the AP Value Added Tax Act, 2005, would be amended to bring down the VAT on ATF to 1%. The notification will be published in the AP Gazette on September 20.

Confirming the move, communications advisor to the AP government, Parakala Prabhakar said the state government has decided to slash the tax on ATF to attract more airlines to airports in the state.

The development comes in the backdrop of a high-level meeting that chief minister Chandrababu Naidu and Union civil aviation minister Ashok Gajapathi Raju had in Delhi with top executives of international and domestic airlines where the state government had indicated that VAT on ATF would be slashed. According to industry sources, the decision of the state government would result in a massive boost to civil aviation, improving air connectivity to airports located in Vizag, Vijayawada and Tirupati.

According to a revenue department official, while the move will initially result in tax losses to the state, the policy would ensure that more number of airlines stop-over at airports in the state offsetting the losses.

Commenting on the move, an airlines industry source said, "This will attract more airlines to stop over at AP airports as they would like to benefit from reduced taxes at a time when competition is only getting tougher and every little bit to cut costs counts. Even passengers will benefit as the airlines can make fares more affordable."

While pointing out that VAT on ATF was one of the key issues affecting the growth of the airline industry, managing director of Air Costa LVS Rajasekhar said, "The relief will definitely benefit air travel. Aviation fuel cost is a major concern for air carriers as it comprises nearly 50% of the operating cost as compared to 25-30% in other countries."

Your 2 hours a day, thrice a week for 100 days can change many lives. Apply now to volunteer with Teach India Delhi/NCR & Mumbai region only.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

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