Government Implements 5% Tax on Aircraft and Engine Parts

16 Jul 2024 CW Team

The Indian government has introduced a uniform tax rate of 5% on all aircraft and aircraft engine parts, aiming to simplify taxation in the aviation sector. This move replaces the previous complex tax structure that varied across different components of the aviation industry.

Effective immediately, the new tax rate applies to both domestic manufacturers and importers of aircraft parts. This uniform taxation system is expected to streamline compliance procedures and reduce administrative burdens for businesses operating in the aviation sector.

The decision to implement a standardised tax rate comes as part of broader efforts to boost local manufacturing and attract investments in the aerospace industry. By providing clarity and consistency in tax policies, the government aims to enhance India's competitiveness as a global hub for aviation manufacturing and maintenance.

Stakeholders in the aviation industry have welcomed the move, anticipating improved ease of doing business and reduced transaction costs. The uniform tax regime is poised to stimulate domestic production capabilities, encourage technological advancements, and support the growth of ancillary industries associated with aerospace manufacturing.

This initiative aligns with the government's 'Make in India' initiative, aiming to promote indigenous production of aircraft components and reduce dependency on imports. It also seeks to create a favourable environment for innovation and job creation in the aviation sector, contributing to the country's economic growth and development.

Equipment

12 Dec 2025

Schwing Stetter India Unveils New Innovations at Excon 2025

Schwing Stetter India unveiled more than 20 new machines at Excon 2025, marking one of its most significant showcases and introducing several India-first technologies to the construction equipment sector. The company launched the country’s first 56-metre boom pump designed and manufactured in India, the first fully electric truck mixer, the first CNG mixer variant and the first hybrid boom pump. Executives said the launch portfolio was engineered to support India’s move toward faster, greener and more vertically oriented infrastructure through advanced engineering, clean-energy solutions a..

SEPC Resolves Hindustan Copper Dispute, Wins Rs 725 Mn Order

Engineering, procurement and construction firm SEPC Ltd has recently settled a dispute with Hindustan Copper Ltd (HCL) and secured a mining infrastructure order valued at Rs 725 million from the state-owned company. SEPC informed the stock exchanges that it has executed a settlement deed with HCL, bringing closure to all inter-se claims and counterclaims arising from arbitration proceedings. As part of the settlement, SEPC will receive Rs 304.5 million as full and final payment, marking the resolution of all pending disputes between the two entities. The company also stated that Hindustan Co..

20% Ethanol Blending Cuts India’s CO2 Emissions by 73.6 Mn Tonnes

Union Road Transport and Highways Minister Nitin Gadkari recently said that India has reduced carbon dioxide emissions by 73.6 million metric tonnes due to the adoption of 20 per cent ethanol blending in petrol. He made the statement while replying to supplementary questions during the Question Hour in the Lok Sabha. Describing ethanol as a green fuel, the minister said it plays a key role in reducing pollution while also supporting higher incomes for farmers. He underlined that ethanol blending contributes both to environmental sustainability and rural economic growth. Nitin Gadkari also po..