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 :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: cpt :: VAT Audit :: ACCOUNTING STANDARDS :: TDS :: VAT RATES
 
 
News Headlines »
 All you need to know about claiming tax break on HRA
 How much income tax you should pay on investments in gold?
  Best ways to save tax in 2017
 8 unknown stocks that could yield huge returns
 Government may set threshold for probe into deposits to prevent harassment of taxpayers
 How to calculate capital gains tax
 April 1 still the target for GST: FM
 How to respond to CBDT’s tax compliance notice
 Goods & Services Tax (GST)(As On 01-01-2017)
 Excise, service taxpayers to migrate to GST portal by January 31
 Tax numbers belie slowdown: FM

Exporters on edge as DEPB scheme nears expiry date
February, 10th 2007

The proverbial Damocles sword is hanging over exporters availing the popular yet controversial duty entitlement pass book (DEPB) scheme. With the government on a drive to rationalise incentive schemes and tax exemptions, the heat may be felt by DEPB users as the scheme is slated to expire on March 31.

While exporters are expecting an extension of the scheme, as has been the trend since the last two years, the delay in announcement of the extension is making them cagey.

Although the committee set up to work on an alternative DEPB scheme headed by Planning Commission member Anwarul Hoda is yet to come up with its recommendation, sources said that Budget 2007-08 may announce a roadmap for discontinuation of the scheme.

The DEPB scheme, which seeks to neutralise the incidence of Customs duty on the import content of the export product by way of grant of duty credit against the export product, is non-compliant with World Trade Organization (WTO) norms and has been a subject of some WTO disputes. The non-compliance is mainly because of its non-transparent nature since the reimbursement is based on prefixed rates and is freely transferable.

The government is yet to indicate whether the DEPB scheme will continue for another year. Sources added that an extension should have been announced by this time, as it is time for exporters to do their costing and take orders for the next six months. If exporters do not know what is happening to the DEPB scheme, they would not be able to do their costing and pricing properly, an official said.

The plethora of export promotion schemes, excluding special economic zones (SEZs), cost the exchequer a whopping Rs 34,430 crore in 2005-06. In fact, the finance ministry has asked a leading economic think-tank to do a cost-benefit analysis of the various schemes.

The revenue department has always been against keeping multiple schemes, as it is difficult to administer them. It has supported expanding the drawback scheme to more products as it is considered more scientific unlike its counterpart DEPB.

The revenue departments view point on rationalising tax exemptions and incentives has got support from parliamentarians cutting across party lines. The last meeting of the consultative committee attached to the finance ministry has also supported the view.

At present, the government has close to 11 export incentive and promotion schemes, including SEZs. The schemes include duty entitlement passbook scheme, drawback, export promotion capital goods scheme, duty-free import authorisation, advance licence, export-oriented units, Software Technology Park of India and Vishesh Krishi Upaj Yojana.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

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