Home / Knowledge / News / Apparel/Garments / AEPC requests govt to enhance depreciation rate
AEPC requests govt to enhance depreciation rate
22
Feb '12
Chairman of Apparel Export Promotion Council (AEPC) submitted Pre-budget Memorandum 2012-13 to Hon'ble Union Minister of Finance, Shri. Pranab Mukherjee.

AEPC recommends:

1. Disallowance of expenditure for non-compliance of TDS provisions

TDS provisions of Sec.40a(ia) disallowed the expenditure for delayed or no compliance of TDS. Because of this provision legitimate business expenditure is likely to be disallowed and an artificial increased income is liable to Income Tax. The provision may be withdrawn, since there are other adequate provisions to take care of non-compliance of TDS.

The provisions Sec.40a (ia) can be amended in such a way that if tax is deducted before filing 'return of income', the relevant expenditure may be allowed, irrespective of date of payment.

2. Increase in the rate of depreciation from the assessment year 2011-2012

In the 2005-06 Union Budget, depreciation on Plant & Machinery was reduced from 25% to 15%. This assumes a life span of nearly 25 years for such Plant & Machinery. However machinery used in Garment Industry are susceptible for frequent technological changes. Because of severe competition in export trade, it is very essential that the used machines are replaced by state of art machinery. The normal useful life considering obsolescence in Garment Industry is only 4 years. Under the circumstances, we request to enhance the depreciation rate from the 15% to previous level of 25%. Otherwise, at least for Garment Sector, the rate of depreciation may be fixed at 25%.

3. Waiver of TDS on foreign agency commission

The Income Tax Department is currently asking exporting units to pay TDS on payments made for Foreign Agency Commission, though the service is provided outside India. There is an anomaly in the interpretation of Section of the IT Act. As the services are provided outside India, we request to give waiver of TDS on Foreign Agency Commission.

4. Refunds

Refunds arise mainly because of TDS provisions over which the assessee has no control. The deductor commits various types of errors and mistakes with the result the deductee is put to hardship. Even Government agencies such as Banks, Post Office, Electricity Board do not adhere to the procedure with regard to TDS. The common mistakes committed by the deductors are illustrated below:

i. Wrong entry of PAN by way of clerical, typographical error.

ii. Belated deduction.

iii. Non-filing or incorrect filing of TDS returns through electronic media.

iv. Wrong rates applied to deduct tax.

v. Rates approved by the Assessing Officer under Section 197 is not properly updated.

vi. Even if the deductee approaches deductor for rectification of such returns, invariably such requests are not attended to and/or ignored.

Similarly there are clerical errors in updating advance tax payments also.

Unless there is absolute co-ordination among the deductor, deductee and the department, it is very difficult to get the required rectification put through.


Must ReadView All

Textiles | On 29th Jun 2017

Nan Ya files trade petition in US against Korea & Taiwan

Nan Ya Plastics Corporation, America, a US synthetic fibre producer,...

Textiles | On 29th Jun 2017

Indian textile industry will reach new milestone by 2020

By 2020, textile technologies will be highly advanced not only with...

Apparel/Garments | On 29th Jun 2017

Amazon intends to keep investing and growing in India

American online retail giant Amazon intends to keep investing and...

Interviews View All

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X