1. Waiving of Service Tax on taxable service to in sub clause (zzze)  of clause (105)  of Section 65 of Finance Act on services to specified associations under (zzze) of Finance Act)  for the period viz. 16.06.2005  to 06.07.2009.

2. Expansion of services under Section 66D (l) (ii) & (iii) of the Finance Act 1994 – negative list of service tax and service tax on vocational education/training courses.

It is requested that Govt. may notify ATDC and AEPC respectively as VEC and Skill Assessment Body, recognized by the law, since they are operating out of grants provided under Modular Employable Skill Course and funds are released by the Ministry of Textiles under budgetary heads mentioned above.

-Income Tax:

Section 35 of IT Act, 1961 (Amendment Sought):- The benefit of this section should be allowed by allowing readymade garment sample making to the extent of 5% of the turnover of that assessee in the same assessment year.

Other demands from the finance Ministry includes: DOR to issue clear-cut directions to field formations that no export consignment shall be stopped at ports, in line with FTP; All seaports, ICDs to be included for 24 x 7 clearance. Ministry of Finance to issue directions; 15% Investment Allowance is now available for Project of Rs. 100 cores and above. It is requested that for the apparel sector, the threshold limit may be reduced to      Rs. 10 crores and Govt. to notify that Textiles Committee’s opinion on classification of garments shall be binding on customs.

-Issues which need recommendations to Ministry of Labour & Employment

Overtime issue in Labour laws

1. Extra wages for overtime under section 59 of Factories Act 1948 is more than what is prescribed under ILO convention – it should not be more than 125%.

2. The cap of 50 hours a quarter should be removed under section 64 of the Factories Act, 1948

3. Recommendations on FTP

It is recommended that the schemes may be extended by 3 years up to the year 2015-16, so that exporters can plan their marketing strategies on long term basis; in non-traditional apparel markets, the duty scrip may be increased from 3% -4% to 5%; in traditional countries like EU and US, duty scrip may be increased from 2% to 3%, under Status Holder Incentive Scheme, the duty scrip may be increased from 1% to 2% and expansion of Market Linked Focus Product Scheme to certain countries.

Shri Magu said, “Other demands with respect to FTP  includes: Early finalization of FTA with EU;To announce all the benefits in Foreign Trade Policy for three years; Duty Scrip @ 5% on FOB value of exports to countries like Latin America, Australia and New Zealand, where freight charges to FOB are very high, 3% interest subvention may be made available up to 31.03.2015, Zero duty EPCG Scheme to beextended in XII Five year plan and Zero duty EPCG Scheme should be made available to Apparel Exporters who have availed benefit of TUFS.”

Apparel Export Promotion Council