The world’s biggest aircraft leasing companies have hit a snag in India, with tax authorities resisting efforts to repossess aircraft they had leased to low-cost airline SpiceJet due to the carrier’s unpaid goods and services tax (GST) dues.
At least 13 Boeing 737 aircraft of SpiceJet, which the airline wants to return to trim its operational cost, are awaiting a no-objection certificate (NOC) from tax authorities, sources have confirmed. The permission to export these aircraft has been withheld. SpiceJet hasn’t paid GST dues, which are 5 per cent of each aircraft lease rental through a reverse charge mechanism.
Reverse charge is where