Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
Top Headlines »
Open DEMAT Account in 24 hrs
 Budget 2023 LIVE Updates: Rs 7-lakh tax-free income limit, how does that play out for you?
 Notification No. 2/2023 Central Board Of Direct Taxes
 The Union Budget Must Aim to Tackle Inequality
 How to file ITR as an OCI on Indian income?
 4 income tax benefits you could expect from Budget 2023
 10 key steps to plan your taxes in 2023 Income Tax
 Clarification for the purposes of clause (c) of Section 269ST of the Income-tax Act, 1961 in respect of dealership/distributorship contract in case of Co-operative Societies
 How to save income tax under various sections in FY 22-23?
 5 tax-saving techniques for FY23 Here is what experts suggest
  Tax moves to make before end of 2022 Your Money

Commerce, FinMin in funding brawl
December, 23rd 2006

A PRE-BUDGET tussle between the finance and commerce & industry ministries has broken out with the latter demanding that its budgetary allocation for 2007-08 be increased in tandem with increasing exports. The commerce department claims that Rs 800 crore worth of payments to exporters - including central sales tax refunds to EOUs and excise refund to deemed exporters - could not be made in the current fiscal due to fund shortage.

The commerce & industry ministry is planning to ask the finance ministry to take on the responsibility of making all payments to exporters if adequate resources are not allocated in Budget 2007.

The commerce department officials said that while the finance ministry makes its share of payments to exporters like duty drawback on time, the commerce ministry has to make exporters wait as they are constrained by inadequate resources. We get a bad name for no fault of ours, an official said.

In 2006-07, budgetary allocation for the commerce department was increased to Rs 1,925 crore from Rs 1,902 crore in 2005-06 resulting in an increase of less than 2%. You cannot have a jump in exports without a corresponding increase in funds for meeting their refund claims, the official added.

Sources pointed out that in case the finance ministry is not ready to increase allocations adequately, the commerce department would ask it to take on the responsibility of paying all refunds to exporters. Our department will very happily handover the responsibility to the finance ministry, the source said.

Meanwhile, exporters - in their pre-budget memorandum to the finance minister - have demanded that they should be granted CST exemption, just like EOUs. According to FIEO president Mr OP Garg, the CST element comes to 2.8% of export value (assuming inputs cost 70%) which makes Indian exports less competitive. All exporters should be exempted from paying CST, he said.

The commerce ministry has not yet sent its formal budget proposal to the finance ministry. Officials are still working on the outlay they should ask for in the next fiscal.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2023 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting