Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: VAT RATES :: TDS :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: articles on VAT and GST in India :: VAT Audit :: due date for vat payment :: Central Excise rule to resale the machines to a new company
 
 
« News Headlines »
 Can the filling of GSTR-3B be avoided by filing GSTR-1, 2 & 3?
 CII seeks extension of time for filing GST returns
 A tax saver scheme with higher returns
 GST registration mandatory for TDS entities
 Govt rules out extension for filing GSTR-3B returns after December
 Tax department’s e-filing portal out of action for 2 hours
 Use ITR-2 to show salary and capital gains income
  TDS Applicability On Government Contracts Under Gst (Under Section 51 Of The Cgst Act, 2017)
  How to file ITR for FY 2016-17 and all the links you need
 All about E-way Bill under GST
 Good and simple tax: on the GST regime

FM to study exporter demands on cheaper credit, DEPB
November, 16th 2007
Even as finance minister P Chidambaram gave a patient ear to textile exporters on examining the proposal to provide for interest subvention on loans, he also asked them to hedge their exposures against currency appreciation.

Mr Chidambaram is understood to have given assurance to exporters to examine their demands. Exporters want a lower rate of interest at 6% on short-term credit, reimbursement of state levies and higher duty entitlement pass book (DEPB) scheme and drawback rates.

However, bankers present at the meeting were of the view that interest rate component was only a small part of the larger problem faced by the textile exporting community with exports of up to $13-14 billion annually.

Bank of India chairman T S Narayanasami said, There is an erosion in profitability for export-oriented units (EOU) due to the dollar-rupee parity. Exporters are of the view that high interest rates is further aggravating the situation.

Interest rates have moved up across the industry segments and logically for this sector as well. Banks will have to examine whether further interest subvention will really help the sector, he said pointing that interest rates are only a small problem given the nature of other issues that exporters face. Banks are currently lending 4.5% below PLR to the textile industry at around 8%.

The government has already announced relief measures for exporters, aggregating to Rs 5,000-5,500 crore first in July and then in October. The package included a 2% interest subvention for pre-and post-shipment credit and payment of interest on exchange earners foreign currency (EEFC) accounts. They have also been given exemption on service tax on seven items for exports.

While agreeing to look into exporters demands, finance minister also wants them to brace for a strong rupee. The government has already increased the ceiling of the market stabilisation scheme which is managed by the central bank to intervene in the exchange market.

A large number of exporters have short gestation periods and are unable to hedge exposure for such duration less than a year. Typically, only the bigger exporters with a period of supply beyond 1 year, hedge their exposure. But going forward all exporters need to enter into forward contracts to mitigate the impact of a strengthening rupee, a government official said.

The rupee has risen almost 12% against the dollar in 2007, making imports cheaper but hurting exports. In rupee terms, exports have risen only 5.34% during April-October this year.

Textile industry enjoys interest subvention. The rate of interest charged is 8% or more. We have proposed that this should be brought down to 6%, Cotton Textiles Export Promotion Council chairman Prem Malik said. Exporters should be permitted to stagger loans, further, a flat rate should be used for both preshipment and postshipment for 360 days, he added.

Exporters also sought relief on duty drawback, reimbursement of state levies as well as extension assistance given under schemes like MDA.

There are power problems faced by textile units. I hope the government provides subsidy on this account. Interrupted power supply, increases our costs of production, another exporter said. We feel that Market Development Assistance (MDA) should be extended uniformly to all categories of exporters, M S Mathivanan, Powerloom Development and Export Promotion Council said.

State Bank of India chairman O P Bhatt, Bank of Baroda chairman A K Khandelwal and Canara Bank chairman M B N Rao were also present at the meeting.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions