Last week, JetSetGo, the country’s largest private jet and helicopter fleet operator, became the first Indian company to directly import an aircraft (Hawker 800 XP) in 74 years, and was leased through IFSC, GIFT City. The transaction follows Finance Minister Nirmala Sitharaman’s announcement in the Union budget that a tax holiday will be offered for capital gains of aircraft leasing companies that set up their subsidiary at GIFT City, Ahmedabad and a tax exemption for aircraft rentals paid to foreign landlords who settle. their business in India.
JetSetGo co-founder and CEO Kanika Tekriwal tells us how her company was able to complete this transaction:
The main challenge encountered during the rental process was to get the aircraft cleared as it was the first time that an aircraft had been cleared by an Indian company. The process is long. The aircraft imported to India must be filed under the SEZ as an import and when leasing the aircraft to any NSOP an entry invoice must be filed. The process takes 7-8 hours after the plane arrives. Customs taxes must be paid through SEZ’s online system, with payment going directly to RBI. The RBI then sends a confirmation to customs, which delays the process for 3-4 hours.
Since the transaction was unique for the customs authorities, making them understand that it was a challenge. It took us two days to work with them after completing the first part of the process.
Further after generating two incoming invoices (one incoming and one outgoing), the next challenge we faced was payment. Payment must go to the account number generated online by RBI which is itself unique to a transaction, so you cannot add it first. The account number is unique and 30 digits long. Often banks do not support a large account number, but in the end we were able to make the payment through another bank. Since customs cannot leave the plane without paying customs, the whole process was long, tedious and difficult. Mihan’s DC and customs team should be congratulated on making the transaction successful.
(As said to K giriprakash)