Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: VAT RATES :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: cpt :: TDS :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: form 3cd
 
 
« News Headlines »
 Income tax exemption for FY19
 How will the new provisions really work?
 How to save income tax? Best tips for young earners
 Forgot to verify your income tax return? Here's help
 Notification of Government e-Marketplace (GeM) under section 138 of the Income-tax Act
 Income tax returns can be filed even if you missed deadline
 What is the difference between a tax return and a tax refund?
 Improving tax compliance in India
 How to invest in the new LTCG tax regime
 5 Tips to help you save tax
 Why to file income tax return?

Exporters won't require CA audit to avail of 2% discount
April, 13th 2009

It may now be easier for exporters to borrow money at a cheaper rate under the discount scheme offered by the government in select sectors.

RBI, the countrys apex financial institution, is planning to do away with the mandatory requirement of submitting audit certificates from chartered accountants establishing the product being exported to avail the discount from banks, a government official said.

The government has also asked banks not to exclude those exporters from benefiting from the scheme who were already being given loans at a sub-PLR rate (a rate lower than the prime lending rate or the benchmark rate at which banks lend) due to their good performance in the past.

The decisions were taken at a recent meeting of bankers with the committee of secretaries led by the Cabinet secretary and senior RBI officials where it was observed that few exporters have been able to avail the 2% interest rate subvention given by the government as part of the stimulus package announced last year because of stringent norms.

Under the interest rate subvention scheme announced last year, exporters of textiles, handicrafts, leather, marine products, gems & jewellery, carpets and small & medium enterprises are allowed to borrow money from banks at 2% lower interest than what is charged from other exporters.

The government reimburses banks for the interest rate differential. The scheme was announced to help the sectors survive the global demand slowdown.

The commerce department has already given Rs 800 crore to banks for implementing the scheme. But in the meeting, it was observed that very little had been passed on to exporters, the commerce department official, who did not wish to be named, told ET.

Industry representatives, who had also attended the meeting, pointed out that the requirement for submission of CA audit certificates was an unnecessary hassle discouraging exporters from availing the subvention facility.

Since all manufacturers, including the small scale industry, the micro small and medium enterprises and the large manufacturers already have the required certifications given by the respective state government and Central government bodies, there is no confusion about the products they are manufacturing.

It was observed in the meeting that the requirement for producing a CA audit certificate to establish that the product that was being exported was covered under the subvention scheme was unnecessary and added to the costs of an exporter. The RBI has, therefore, agreed to do away with the requirement, the official said.

It was also observed in the meeting that banks were not extending the subvention to exporters who were already being given loans by banks at a lower rate because of their past performance.

We found out that exporters who were already being given loans at a lower rate of 2% or more by banks were not being extended the benefit of additional subvention.

The bankers were told that such exporters should also be given the discount as it was the government which was footing the bill, the official said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Article Management Solutions System Article Management Software S

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