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: TDS :: empanelment :: ACCOUNTING STANDARD :: form 3cd :: cpt :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: list of goods taxed at 4% :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: VAT RATES
Customs and Excise »
  Rate of exchange of conversion of the foreign currency with effect from 21st October, 2016
 Rate of exchange of conversion of the foreign currency with effect from 21st October, 2016
 Seeks to amend Notification No. 27/2014-Central Excise
 Government doubles limit of excise duty evasion for arrest and prosecution
 Excise duty evasion limit to warrant arrest revised to Rs 2 crore
 Guidelines for launching of prosecution in relation to offences punishable under the Customs Act, 1962
 GST notification triggers uncertainty over excise duty
 Preparing for GST: govt looking at restructuring excise/customs cadre
 Refund of Terminal Excise Duty (TED) under Deemed Exports where Duty has been paid from CENVAT Credit and ab-initio waiver is not available.
 CBEC directs customs officials for random search of vessels
 Rate of exchange of conversion of the foreign currency with effect from 7th July, 2016

Remove customs and excise duties
July, 01st 2009

The textile sector is seeking removal of customs and excise duty on MMF and their inputs, and also on the liquid fuels used as feedstock for their captive power plants

The Indian Textile Industry is currently one of the largest and most important industries in the Indian economy in terms of output, foreign exchange earnings and employment.

The industry contributes 4 per cent to the country's GDP, 14 per cent to the country's industrial production and around 12 per cent to the country's foreign exchange earnings. However, the textile industry was one of the drastic hit industries on the back of Global economic melt down.

The first half of the fiscal has observed hit due to sharp depreciation of rupee, high power cost and the second half looked dreary due to high raw material costs, tight liquidity and slump in demand in the exporting countries.

Resultantly, the labour intensive industry has observed many layoffs of the skilled work pool in FY09. Although the problems relating to liquidity in the industry was addressed in Interim Budget 2009-10, by releasing the entire pending TUFS amount till FY 09, and extending interest subvention etc; these measures didn't meet the needs of the industry. 

Post general elections, with immediate action to help labor intensive and major export exchequer -- Textile industry, GOI has extended helping hand by inviting industry to explore seeking opportunities and diversifying to the new export markets like Bahrain Kuwait, Oman, Saudi Arabia, Qatar and UAE, Latin America, Russia and Oceania; implementing National Fiber policy; inducting momentum to the implementation of Technology Up gradation Fund Scheme, Scheme for Integrated Textile Parks and Technology Mission etc.

The textile ministry has also presented the short term strategy (rationalize fiscal structure, exempt service tax, reduce interest rates on pre and post shipment credit and facilitate faster clearance of arrears of terminal excise duties and Central sales tax), medium tern (inducting momentum to the implementation of Technology Up gradation Fund Scheme, Scheme for Integrated Textile Parks and Technology Mission in 11th Five Year Plan period) and long term strategy

However, the Textile Industry which was represented by CITI submitted a memorandum to GOI suggesting the new measures that would make industry regain its lost sheen in the coming years.

Industry Expectations:

The industry expects excise duty of 4% on all man-made fibers, 14 per cent on all liquid fuels used for captive power generation by T&C units and all service taxes on Textile Units to be exempted. It also suggests exemption of Excise duty on machinery procured from the domestic market against EPCG licenses. In addition to the above, reduction in present 4-8 per cent excise duty on machinery and 8 per cent on all components and spares to 4 per cent for all textile machinery, components and spares is also looked at.

The industry also Refund all accumulated Cenvat credit of T&C units. Rule 5 of the Cenvat Credit rules has to be amended suitably in order to facilitate refund of accumulated Cenvat credit in T&C units

The Industry also seeks abolishing basic customs duty of-  5 per cent on all man-made fibers, 10 per cent on all liquid fuels used for captive power generation by T&C units, Duty ranging from 5 per cent to 10 per cent on all machinery for textiles and clothing, except for spindles.

The Exemption is also expected on fibers and all inputs for T&C industry from special additional duty of 4 per cent charged on fibers and many other products, towards state duties levied on similar domestic products.

It also looks for exemption of 11.33 per cent of book profit on MAT credit entitlement, 16.995 per cent of dividend distribution tax, FBT and Surcharge (10 per cent for all Corporate Taxes) for T&C industry

On the liquidity front the Industry proposes Rescheduling of loans for all T&C units by permitting deferment on repayment of principal amounts for 8 quarters on condition that the interest will continue to be paid during this period. To accommodate rescheduling, a two year extension may be allowed for the repayment period for term loans. Addition to the above, Under TUFS, extension of repayment period may be permitted beyond the currently stipulated 10 year period.

The Industry seeks increasing 2% interest subvention to 4 per cent and allowed until March 2010.

It also suggests, that accumulated cenvat credit and delays in payment of TUFS assistance, refund of TED, rebate of excise on exports etc should be considered as delayed dues from government as receivables for assessment of working capital for T&C units

Higher domestic prices were hurting its textile industry. So the industries asked for withdrawal of MSP for Cotton or alternatively dispose of procured cotton promptly at international prices.

Although India is second largest producer of cotton, lower domestic mill use as against other countries doesn't support export competitiveness of cotton. Thus it suggests Government to with draw the export incentive of 5 per cent on cotton under Vishesh Krishi and Gram Udyog Yojana (VKGUY) effective from 1st April 2008 to 30th June 2009.

The industry seeks Permit without restriction for wind energy generators as against only within limit of 25 per cent stipulated for other expenses under TUFS; Abolish Hank Yarn Obligation as against 40 per cent of yarn production to be packed on hanks by all spinning mills, except in the case of hosiery yarn and export production and Restore pre reduction rates that were reduced substantially in September 2008; Take fuel duties into account for calculation of Draw Back rates.

State Level Duties like CST, electricity duty, mandi tax, entry tax and other local as well as state level duties and taxes amount to 4-6 per cent of FOB value of export. All taxes are admittedly refundable to exporters. Since State Governments May be refunded by Central Government

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Mission

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