Service tax applicable on maintenance, repair and overhauling (MRO) services to airlines by GMR Venture in SEZ – AAR

A tax tribunal has ruled that service tax will apply on the proposed GMR-led joint venture in Special Economic Zone to provide maintenance, repair and overhauling (MRO) facilities to domestic and foreign airlines. The ruling was given by the Authority of Advance Rulings (AAR) on an application filed by the MAS-GMR Aerospace Engineering Company, a joint venture of GMR, Hyderabad International Airport Limited, Hyderabad and Malaysian Aerospace Engineering, SDN-BHD, Malaysia. The venture company, which proposed to set up MRO facility at an SEZ in Hyderabad, wanted to know whether the service tax ...