Big relief to domestic airline companies, excise duty will not have to be paid on ATF for international flights
Domestic airlines excise duty: Domestic airlines have been given relief from 11 percent Basic Excise Duty (Excise Duty) on purchase of Aircraft Fuel (ATF) from Oil Marketing Companies.
The government had on July 1 announced the imposition of a special additional excise duty at the rate of Rs 6 per liter on export of aircraft fuel. (Reuters)
Domestic airlines excise duty: Big relief has been given by the government to the airline companies of the country. For international flights operated by them, excise duty will no longer have to be paid on ATF i.e. aviation fuel. According to the news of PTI, the Finance Ministry has given relief to domestic airlines operating international flights from 11 percent Basic Excise Duty (Excise Duty) on purchase of Aircraft Fuel (ATF) from Oil Marketing Companies.
Decision has been implemented from 1st July
According to the news, the ministry said in a notification that basic excise duty will not be charged on ATF sold to domestic airlines for operating international flights. This decision has come into effect from July 1. The government had on July 1 announced the imposition of a special additional excise duty at the rate of Rs 6 per liter on export of aircraft fuel. After that doubts arose whether this fee would be applicable on domestic airlines operating international flights or not.
According to foreign airlines
Oil marketing companies such as Indian Oil, Hindustan Petroleum and Bharat Petroleum were of the opinion that after levying excise duty on ATF exports, domestic airlines with international flights would have to pay basic excise duty at the rate of 11 per cent. But the Finance Ministry has clarified that this excise duty will not be applicable on domestic airlines for international flights.
This arrangement will be in line with the exemption in excise duty given to foreign airlines. KPMG Tax Partner Abhishek Jain said that the government has given relief due to the implementation of excise duty on aircraft fuel of aircraft going abroad. This is a welcome step for the airline industry.
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