Shreyaansh Yash Chand’s Post

And just like that the budget season is upon us again, as #FM Nirmala Sitharaman prepares to unveil the #budget here are some expectations like #policyinterventions, #reducingtax and overall ease of doing #business from the aviation industry - In a memorandum, private #airportoperators have sent the government several suggestion pertaining to rationalisation of both #direct and #indirect tax structure with specific request to issue specific clarifications regarding tax charged by airlines on user development fee, which is paid by #passengers. Since #airlines are acting just as a collection agent, they should not deduct tax at source on such an amount while making payment to #airportoperator. It leads to blockage of #workingcapital of the airport operator. Further, the grouping has also requested the government to increase duty-free allowance to ₹100,000 for purchase from a duty-free shop in India, from the current ₹50,000, a limit that was fixed in April 2016. In line with inflation and to increase foreign earnings, the association has also requested the government to allow #dutyfree #shopoperators to sell domestic Indian liquor at departures tax-free and be treated as export. For airlines, the cost burden due to the price of aviation turbine fuel (#ATF) remains a crucial challenge. Indian airlines have long demanded that the government further rationalise the duty structure for ATF and to include it under the goods and services tax regime. Aircraft and engine component manufacturing are optimistic about incentives to boost the domestic supply chain, as Indian airlines including Air India, IndiGo, Akasa now have a cumulative orderbook of more than 1 600 planes. A production-linked incentive scheme for the manufacture of aircraft components and sub-assemblies with an emphasis on high in-country value-addition will be welcome. Measures such as #taxbreaks for aerospace R&D and systems development will also help. What are your expectations from the ministry? Let us know in comments. Government of India Official Narendra Modi Ministry of Commerce and Industry, Government of India Nirmala Sitharaman Rohit Tomar Seemaa S Vedaak Veena Chawla Rinaldo Rhine #budget #aviationsector #MROsector #aerospace #componentmanufacturing #tax #policies #development #makeinindia #investinindia #aviationhub #aerospacehub #MROhub

The IATA highlights high taxes and insufficient infrastructure as major hurdles for Indian airlines, impacting competitiveness and growth. To address this: 1. Reduce ATF Taxes 2. Expand Infrastructure 3. Simplify Regulations 4. Promote Strategic Mergers 5. Adopt Innovative Pricing These reforms are crucial for leveraging India's booming aviation market. #Aviation #India #IATA #Infrastructure #TaxReform #Growth

❓ Can Airlines rightfully retain taxes, such as GST, when a passenger misses their flight? 👉 This very question will now be investigated by the Directorate General of Goods and Services Tax Intelligence (DGGI). 👉 The DGGI has initiated investigations into airlines retaining taxes collected from customers in cases of no-show by passengers. 👉 The sale of airline tickets is subject to GST, with economy class tickets taxed at 5% and business class tickets at 12%. 👉 However, concerns have been raised regarding the taxation of consideration collected from passengers who do not avail of the airline service due to a no-show scenario. 👉 The debate continues on whether airlines should refund GST collected from no-show passengers, sparking discussions on the appropriate tax rate for consideration retained in such cases. More info in the link below! #DGGI #GST #noshow #passengers #Indianairlines #taxes #investigation #taxrefund

Global #airlines fear the complexities of #India's #tax #system could drive them away from the world's 3rd largest #aviation #market, warned International Air Transport Association (IATA).  . During a roundtable discussion on the sidelines of its 80th annual general meeting (AGM), #IATA #director #general Willie Walsh highlighted concerns over potential withdrawal of international airlines due to #tax #intricacies, including #double #taxation risks. . “We are very concerned that some of the proposals would actually lead to airlines withdrawing from the market because (they would be exposed to) the #complexity of #tax #rules, the #extent of #taxes, and the risk of double taxation, which most air service agreements set out to avoid," Walsh said. . “I go back to my time as #airline #CEO. There has always been a #debate about application of #tax #rules in #India, which appear to be far more #complex than anywhere in the #world. These investigations will continue," #Walsh, a former #chief #executive of #BritishAirways, said. . 👉 Full article here 👉 https://lnkd.in/dfh5NUB2

Sweden to abolish aviation tax 💲 The Swedish Parliament has decided that the #aviation #tax in Sweden will be abolished as of 1 July 2025. This means that airlines will no longer need to report and pay aviation tax for passengers travelling from Swedish airports. Learn more about the new rules here: https://lnkd.in/dwYDad8A

Our Partner Rohini Mukherjee and Principal Associate Deep Chandra Upreti shared an insightful article titled 'Code share arrangements between airlines: A case fit to tax?', which was published by The Financial Express.   The article highlights that in the airline industry, codeshare and interline agreements enable airlines to expand their network by selling tickets on routes they don't operate directly. While these arrangements benefit both airlines and passengers, there's significant ambiguity around the GST implications on revenue sharing between airlines, leading to potential double taxation. This tax uncertainty could impact the financial health of the aviation sector, despite the government's efforts to boost the industry through initiatives like the UDAN scheme.   Similar to the relief granted to the insurance sector, clarity and potential tax relief for aviation are needed to support its continued growth.   Read this article online - https://lnkd.in/gfaTJYKF #GST #taxation #codeshare #airlines #UDANscheme #airlinesindustry #aviationindustry

❓ Why Global airlines might withdraw from India due to its tax system? 👉 Recently the International Air Transport Association (IATA) warned that the complexities of India's tax system could drive away Global airlines from the world's third-largest aviation market. 👉 This is because the Directorate General of GST Intelligence had issued summons to foreign airlines for alleged tax evasion for import of services by airlines in India. 👉 This year, the DGGI summoned the Indian staff of Thai Airways, Singapore Airlines, Lufthansa and British Airways, among others, over allegations of non-payment of goods and services tax (GST). 👉 According to the agency, services like aircraft maintenance, rentals and crew salaries, overseen by an airline's overseas headquarters, are subject to GST in India. 👉 However the IATA is of the view that Airline’s branch offices in India do not play any role in the crucial operations such as contracting for aircraft leased, crew and pilots, fuel and maintenance costs. Hence the GST levy is improper. 👉 This has led IATA to remark that India's tax system would actually lead to airlines withdrawing from the market because (they would be exposed to) the complexity of tax rules, the extent of taxes, and the risk of double taxation, which most air service agreements set out to avoid. 👉 If Global airlines start withdrawing there could be massive impact on the Indian Aviation sector. According to 2022-23 data from Directorate General of Civil Aviation (DGCA), foreign carriers dominated international air traffic to and from India, with a 56% share, while Indian carriers accounted for 44%. #Indiantaxes #taxlaw #DGCA #globalairlines #IATA #Aviation #taxation #GST

In a huge relief to the foreign airlines facing show cause notices by the @DGGI over non-payment of GST, the Nirmala Sitharaman led – #GSTpanel Council's 54th meeting in New Delhi exempted them from GST on imported services. “Another important decision was taken to exempt import of services by an establishment of a foreign airlines company, there were some notices which were also reported in the media earlier from a related person or any of its establishments outside India when made without consideration,” said Revenue Secretary Sanjay Malhotra while explaining the press on key decisions taken in the meet. This #regularization for the past period is done on ‘as is where is’ basis, which suggests that if a business which received a #taxnotice has paid the tax, there will be no refund, but if it has not been paid, it will be condoned. The above #decision will provide significant relief to the #foreignairlines that were issued show cause notices by the directorate general of gst intelligence (#DGGI) , with GST demands exceeding INR 10,000 crores. Government of India Official NITI Aayog Official Directorate General of Civil Aviation (DGCA) Emirates Etihad British Airways Lufthansa Air France Ministry of Commerce and Industry, Government of India Indian Ministry of Finance Ram Mohan Naidu Kinjarapu Rohit Tomar Seemaa S Vedaak Veena Chawla Rinaldo Rhine #tax #regulations #redtape #GST #policychanges #importedsevices #taxnotice #unpaiddues #airlines #

✈️ **Airlines Under GST Scrutiny: Government Tightens Rules on Unpaid Tax for Cancelled Tickets** 📄 In a significant move aimed at enhancing compliance and curbing tax evasion, the Government of India is intensifying its scrutiny of airlines regarding the Goods and Services Tax (GST) on cancelled tickets. This comes as a response to concerns over the collection and remittance of GST on cancellations, an area that has seen lapses in adherence, affecting overall tax revenue. Here's what you need to know: 1. **New Regulations on Cancellations**: Airlines will now have stricter guidelines to follow regarding the GST applicable on tickets that are cancelled. This includes a clear mandate to ensure that the tax is collected at the time of ticket booking, irrespective of the later cancellation. 🧾 2. **Impact on Revenue**: The government aims to bridge the revenue gap caused by companies failing to remit taxes after cancellations. By enforcing these regulations, the authorities hope to enhance the overall collection efficiency of the GST framework, vital for economic health. 3. **Consequences for Non-Compliance**: Airlines that do not comply with these new regulations face severe penalties. This can include hefty fines and interest on outstanding tax amounts. Compliance is now more critical than ever for airlines that wish to avoid legal troubles and maintain their market position. 4. **The Bigger Picture**: This scrutiny isn't just limited to airlines; it's a part of a broader strategy to ensure that all sectors adhere to GST guidelines. Enforcement agencies are ramping up audits and inspections to identify non-compliance across industries. 5. **Steps Forward**: It's essential for airline operators to reassess their tax practices, ensuring robust systems for tracking and remitting GST on cancellations. Collaboration with tax consultants and regular audits can help mitigate risks associated with this tightening regulation. As stakeholders in the airline industry, we must recognize these changes not merely as regulatory burdens, but as an opportunity to promote transparency and operational efficiency. Let’s be proactive and ensure our practices align with these new expectations! Stay informed, stay compliant! 🌍✈️ #GST #Airlines #TaxCompliance #GovernmentRegulations #CancelledTickets #Finance #AviationIndustry #BusinessUpdate #Transparency #Taxation Note: AI-powered post. May contain errors.

The core reason that the establishment is suddenly interested in climate change comes down to one main factor – money. More specifically, the establishment is hunting down YOUR money through taxation. A second motivator is limiting our freedom of movement by demonizing fossil fuels and limiting our ability to travel. The European Union is now seeking to punish those who fly more than once per year with a frequent flyer tax. The EU has already implemented an aviation tax, but the new proposal is designed to punish the pesky “rich,” but per usual, everyone will suffer. “A frequent flying levy would be a fair aviation measure, reducing excessive flights for wealthy passengers, while raising revenues – including to expand and provide affordable railways and public transport,” the Stay Grounded network told Euro News. The new levy would target everyone flying from the European Economic Area (EEA) and the UK. The standard aviation tax would apply for the first two flights taken per year, but an additional 50 euro surcharge would be applied to medium-haul flights while long-haul, first-class, and business flights would cost an additional 100 euros. Then they are adding an additional 100 euro fee after the fifth flight on top of the initial surcharge. People will be expected to pay an additional 200 euros for their seventh flight and 400 euros for the ninth. Lawmakers believe this tax would increase current EU aviation taxes six times over and cover 30% of the overall budget, the budget that those same lawmakers can never adhere to. Some organizations believe authorities can collect up to 64 BILLION euros per year. But that is never enough for those in government. There are also rumors that aviation will no longer be exempt from VAT and fuel taxes, which would automatically raise the cost of flying for everyone. If government restricts the freedom of movement with respect to people, trade, ideas, communication, and good and services, the world economy cannot possibly survive and this places us at risk of a frightening Dark Age all because governments fear losing power and are desperate to hunt money for confiscation. https://lnkd.in/eY83SmMK