Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Top Headlines »
Open DEMAT Account in 24 hrs
 March 31 deadline is getting near. How to save income tax with tax loss harvesting?
 45-day MSME payment rule: Impact and details of Section 43B(h) explained
 Small savings schemes that offer tax benefits of up to Rs 1.5 lakh under section 80C
 RE-OPENING OF CORRECTION WINDOW FOR MAY 2024 CA EXAMINATIONS
 Powerful Upgrades, Tally 12+1 months renewal Plan and Connected Services for your growing Business - March 2024
 How innovative solutions can help fix the Sec 43B conundrum for MSMEs
 Income Tax dept asks many individuals to explain high value transactions of FY20-21 as Updated ITR deadline nears
 Release Notes for TallyPrime and TallyPrime Edit Log Release 4.1 | What s New!
 Deadline to file updated ITR FY20-21 ends on March 31: Details on additional tax
 4 tax-planning mistakes to avoid this season
 ITR 2024: Here are 8 ways by which senior citizens can save on taxes this year

Theres nothing called election Budget
January, 04th 2008

Customs duty may not be cut

Indias road map for reducing customs duty to Asean levels by the next fiscal has hit a speed bump created by the rupees appreciation.

The government remains committed to reducing the peak rates to the Asean level of 5% to 10%. But the stronger rupee has made it do a re-think on whether to go in for cutting peak duty in the coming Budget, sources close to the development said. Indias peak customs duty is 10%.

The rupee, which has gained about 12.5% vis--vis the dollar this fiscal, has not only hit the profit margins of exporters but has also flooded the domestic market with imports that have become much cheaper. According to latest data, the growth rate of the countrys exports has dipped to 8.02% in rupee terms between April and November, while imports have risen by 12.43% during the same period.

The country has already reduced the peak rate to 10% this fiscal, which comes close to the Asean levels. The government can wait another year before going in for another rate cut, the sources said.

Officials pointed out that a final decision in this regard was usually a relatively easy one to make in the Budget, but has been held back this year. Slashing the peak rates further to about 8.5% in Budget 2008-09 could be an alternative.

The division of opinion is not restricted to the finance ministry. Nagesh Kumar, director-general, Research and Information System for Developing and Non-aligned Countries, said, The purpose of a duty cut is to expose the Indian industry to foreign competition. However, the appreciation of the rupee by over 12% has already made imports so much cheaper. So, a duty cut may not be required next fiscal.

However, R Muralidharan, associate director, PriceWaterhouseCoopers, said, Once the government has decided to go to the Asean level of customs duty rates, temporary aberrations such as changes in foreign exchange rates should not delay the fiscal programme.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting