Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: articles on VAT and GST in India :: cpt :: VAT Audit :: ACCOUNTING STANDARDS :: VAT RATES :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: empanelment :: ACCOUNTING STANDARD :: form 3cd :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4%
 
 
General »
  Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- (Updated as on November 30, 2016)
 Cases for tax scrutiny will be selected by machines
 Time to revisit 1997 direct tax rates, says P Chidambaram
 Lok Sabha passes Bill to tax black money deposits post demonetisation
 Last day to pay property tax with old notes
 Income tax department asks IDS declarants to pay tax by 30 November
 Why PM Narendra Modi must beware of the breathtaking Arthakranti tax
 Japanese firms seek easing of restrictions on funding in India
 Tax on black money: How the cookie will crumble
 Income tax officials say raids on jewellers based on 'credible intelligence' proving fruitful
 Exchange window being misused, government forced to reduce limit to Rs 2000, says Arun Jaitley

Tax credit at higher, older rates
November, 14th 2009

Exporters may continue to get credit for taxes paid on inputs at the current rates despite a reduction in excise and service tax rates earlier in the year.

The government does not want exports to suffer from any disadvantage at a time when there is some improvement, a government official told ET.

The move could give the impression that the government is withdrawing its stimulus package, which it does not want to do at the moment, he added.

Exports have been contracting for the last thirteen months, though the rate of decline has dropped to 11.4% in October as against nearly 40% in May 2009.

A review of the drawback rates reimbursement to exporters of taxes paid on inputs was to happen in the current month. The government had cut excise rates and service tax rates by 2% each earlier this year to stimulate the economy.

If a revision happens at this point of time, drawback rates for several products may go down, the official, who requested not to be named, said. That review may be postponed till after Budget next year, the official added.

A three-member committee, chaired by Planning Commission member Saumitra Chaudhari, works out the drawback rates. The committee has sent a note to the finance ministry asking it to take a decision on whether new rates should be announced this month. The finance ministry is expected to reply soon.

Input duty reimbursement is available to exporters under two separate schemes from which they can pick one. The duty entitlement pass book scheme where exporters are given duty-free import scrips, which can be sold in the market is more popular. The drawback scheme covers majority of textile, handicrafts and leather exporters.

Since the government is specifically interested in protecting labour intensive sectors such as textile, handicrafts and leather, it would hesitate to do anything which could immediately lead to an increase in costs, the official said.

The government does not expect export growth to turn positive before January 2010.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Company Overview

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