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: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: VAT RATES :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: ACCOUNTING STANDARD :: form 3cd :: VAT Audit :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: empanelment
 
 
« News Headlines »
 Use ITR-2 to show salary and capital gains income
  TDS Applicability On Government Contracts Under Gst (Under Section 51 Of The Cgst Act, 2017)
  How to file ITR for FY 2016-17 and all the links you need
 All about E-way Bill under GST
 Good and simple tax: on the GST regime
 Seeks to extend the time limit for filing of GSTR-1, GSTR-2 and GSTR-3
 Good news, find Tax Return Preparers soon at a place near you; 5 things to know
 Filing of GST return
 Why cement companies are going in for M&As
 Govt moves to rework direct tax law after PM’s nudge
 New offer available for filing tax returns online, how to avail

Govt may hike DEPB, drawback rates only for select exporters
July, 12th 2007

The governments relief package for exporters hit by the rising rupee is likely to go to sectors such as leather, textiles, marine products, handicraft, carpet, agriculture and plantation products.

For, these sectors use over 85% indigenous inputs. Official sources said the government was planning to increase duty entitlement pass book (DEPB) and drawback rates for these sectors, as not more than 15% of their output comprises imported inputs.

The government has already announced a slew of incentives, including increasing DEPB and duty drawback rates by 5%. But this would be a temporary measure to offset the losses incurred due to the strengthening of rupee, an official said.

But sectors, which are dependent heavily on imports are not likely to get much relief as they have already received some sort of respite in terms of cheaper imports due to rupee appreciation.

The rising rupee is estimated to result in around 40 lakh people being laid off and exporters losing about Rs 40,000 crore. This year, the rupee has risen nearly 10%so far. It traded at Rs 40.38 for every dollar on Wednesday.

Sigh of relief
Leather, textiles, marine products, handicrafts, carpet, agriculture and plantation products are some of the sectors hit hard by the rising rupee
The government has already announced a slew of incentives, including increasing DEPB
and duty drawback rates by 5%
Sectors dependent on imports are not likely to get much relief as they have already received some sort of respite in terms of cheaper imports
 
The gems and jewellery sector may also get some relief, as it was affected after the US withdrawn the generalised system of preferences (GSP) scheme recently.

The sectors competitiveness was hit as the scheme allowed duty-free imports in the US.

The government has just completed the annual review of DEPB and drawback duty rates, based on changes in the import duty in the Budget. The exercise is complete and we will soon see a reduction in the DEPB and duty drawback rates, the official added.

There were also discussions on imposing a cess on imports as most of the items are below the bound rates. Only wines and spirits, palm oil and some agri products are above bound rates and, therefore, the government can impose a cess on imports, the official said. The finance ministry is, however, unlikely to impose such a cess as they suspect that such a move would fuel inflation, sources said.

The finance ministry is also silent on giving service tax exemption to certain export-related services, announced in the Foreign Trade Policy.

The commerce ministry, on its part, has announced expediting refund of certain taxes and reducing the premium on insurance cover on exports by 10%.

Arrears of terminal excise duty and central sales tax reimbursement will be cleared soon. It has also recommended to the finance ministry that the rate of interest on pre-shipment and post-shipment credit be reduced for exporters to 6%, from the current 9-11%.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Organic SEO Outsourcing Organic Search Engine Optimization Outsourcing Organic Website SEO Organic SEO India Website SEO India Organic Search Engine Optimization India Organic Internet SEO India Organic Web

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