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Exporters seek IT exemption
December, 12th 2006
Exporter associations and federations, including the Punjab Chamber of Small Exporters, today appealed to the Centre to provide income tax exemption on export profit for export units located in the domestic tariff area so that there was a common platform for all. 
 
Exporters want no service tax on export production because export units are registered with the central excise department. 
 
They reiterated the demand on the exemption of service tax on foreign agent commission paid by Indian exporters to procure export orders. 
 
Export houses should be given exemption from VAT because paying VAT and getting refund is cumbersome, resulting in blockage of working capital, said A K Kohli, president of the Punjab Chamber of Small Exporters. 
 
The chamber urged the state government to simplify procedures and reduce paper work for filing monthly returns. 
 
Units in any town/village/city not declared as SEZ or EoU are called Domestic Tariff Area Export Units irrespective of the fact that they are exporting their entire production. These units are not entitled to tax exemptions/benefits.
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