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Plea to notify service tax exemption
June, 07th 2007
Reeling under the impact caused by the drop in export value due to the strengthening of rupee against dollar, Tirupur knitwear exporters have urged the Centre to initiate certain measures that would offer them cushioning effect against the exchange fluctuation.

On behalf of the garment exporters, the Tirupur Exporters Association (TEA) in a submission to the Union Finance Minister, Mr P. Chidambaram, has urged the Ministry to notify at the earliest service tax exemption announced some time ago by the Union Commerce Minister under the foreign trade policy supplement for 2007.

The TEA President, Mr A. Sakthivel, in a statement released here on Wednesday, has noted that the association also wanted the Centre to peg the rate on pre and post-shipment credits being extended to exporters at five per cent and also increase the duty drawback for garments by four per cent.

The association has expressed apprehension that the current garment export trend would be impacted by the appreciating rupee, though Tirupur cluster had clocked Rs 11,000-crore exports during 2006-07 fiscal compared with Rs 8,500 crore in the previous year.

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