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 INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: empanelment :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: VAT RATES :: TDS :: ACCOUNTING STANDARDS :: form 3cd :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: due date for vat payment
« News Headlines »
 CBDT issues second round of Certificates of Appreciation to tax payers for their contribution towards Nation building
 FinMin looks at cut in corporation tax
 Draft Rules for prescribing the method of valuation of fair market value in respect of the trust or the institution-Chapter XII-EB of the Income-tax Act, 1961- reg.
 India is moving towards a flawed GST
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest

Zero-rating to ensure exporters go tax-free
November, 11th 2009

The longstanding demand of exporters for an exemption from payment of all input taxes may finally be met once the new GST regime is implemented.

As per the proposal in the first discussion paper circulated by the Empowered Committee of State Finance Ministers on Tuesday, exports will be zero-rated or exempted from payment of GST. Special economic zones will also be given a similar benefit. This will ensure that Indias exports remain competitive in the GST regime.

For imports, the committee has proposed a levy of both the central GST and state GST. While this could increase the landed cost of imports, full and complete setoff will be available on the GST paid on import of goods & services.

According to Fieo president A Sakthivel, zero rating of exports of goods & services will add to competitiveness of merchandise and services exports.

At present, exporters are being reimbursed only central taxes paid by them through various input duty reimbursement schemes. The taxes levied by the states are not being reimbursed, adding to their cost of production. Over the past few years, the government has examined various ways in which exporters could be refunded state taxes, without any success. Once GST is in place, exporters will also get relief from payment of state-level taxes. According to official estimates, state taxes account for 4-6% of the export value of a product.

On exempting SEZs from payment of GST, Mr Sakthivel said a clear statement on the issue would remove uncertainties paving the way for more investments in the zones. No benefits would, however, be given to sales from an SEZ to the domestic tariff area.

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

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