Latest Expert Exchange Queries

Make 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) | 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: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: VAT Audit :: empanelment :: list of goods taxed at 4% :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: ACCOUNTING STANDARD :: TDS :: ACCOUNTING STANDARDS :: form 3cd :: cpt
 
 
General »
 Non-performance: I-T dept transfers 245 commissioners
 Income Tax efiling: Tax implications resulting from clubbing of income
 Guidelines for selection of cases for scrutiny during the financial-year 2017-2018-regd
  GST: How companies are gaming the system
 Goods And Services Tax transparency: Elimination of added taxes to boost investment in realty
 In a first, Income Tax department to charge govt official under new benami law
 Income Tax Return Filing: 10 common mistakes people make while filing return of income
 Income Tax efiling: A few essential facts for senior citizens to keep in mind
 Pre-GST discounts get Maharashtra 16% more sales tax in three months
 Here’s how self-employed should efile their taxes
 Advance tax given by individuals in June quarter rises more than 40%

Govt may restore tax benefits to manufacturing SEZs
August, 11th 2014

The Government is examining the possibility of restoring tax benefits for a handful of manufacturing special economic zones, while continuing to tax the rest to minimise revenue losses.

“As exports from manufacturing SEZs, excluding gems & jewellery and petroleum, account for just 10 per cent of total SEZ exports, exempting them from taxes would not cost the exchequer heavily," a Commerce Ministry official told BusinessLine.

The idea behind rolling back taxes imposed on manufacturing SEZs is to boost production activity in the country, which is in line with the BJP Government's economic priorities, the official added.

The Finance Ministry, under the previous UPA regime, had imposed Minimum Alternate Tax (MAT) of 18.5 per cent and Dividend Distribution Tax (DDT) of 15 per cent on SEZ developers and units two years back.

This brought to an end the tax holiday promised to the zones for a 10-15 year period in the SEZ policy.

The Commerce Ministry has been trying to convince the Finance Ministry to restore the tax benefits as it affected profitability of units and resulted in a sharp drop in flow of investments into the zones. It stepped up pressure when the BJP Government came to power earlier this year. “The Finance Ministry is reluctant to remove the taxes as it could cause revenue losses of up to ?13,000 crore a year," the official said.

A compromise solution suggested by the Commerce Ministry is restoring tax benefits to manufacturing SEZs, not including gems & jewellery and petroleum products, as these account for only ?50,000 crore of exports every year.

"As profit margins of manufacturing exports is also lower than say IT SEZs, these would account for revenue losses of not more than ?400 crore a year," the official explained.

SEZs in the IT, petroleum products and gems & jewellery sectors, on the other hand, account for almost 90 per cent of ?5 lakh crore worth of exports from all SEZs.

Continuing the current tax dispensation for them would ensure minimal tax loss for the Government.

“However, our first preference remains granting tax exemption to all SEZs, irrespective of sectors,” the official said.

Difficult to invest
Out of 566 SEZs approved by the Government, only 185 SEZs have come into operation.

“This gap is caused due to the abrupt introduction of MAT and DDT on SEZs from 2012. It has become difficult for the developers to bring in investments in such a situation,” said PC Nambiar from the Export Promotion Council for EoUs and SEZs.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multi-level Marketing MLM India Affiliate Marketing Affiliate Marketing Software MLM Software MLM Solutions Multi level marketing solutions MLM Servi

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