Home / Knowledge / News / Apparel/Garments / AEPC submits Pre-Budget Proposal for the year 2011-12
AEPC submits Pre-Budget Proposal for the year 2011-12
16
Feb '11
The Apparel Export Promotion Council (AEPC) has submitted a Pre-Budget Proposal for the year 2011-2012.

With a view to enhance the export-competitiveness of the Indian textile and garment industry, mitigate the impact of above constraints and current economic scenario the following recommendations are put forth:

I Recommendations Related To Direct Taxes
1. Deduction u/s 80IB of Income Tax Act for duty drawback/DEPB The units set up in backward areas were claiming deduction u/s 80IB of Income Tax Act for duty drawback/DEPB and it was legally held admissible by income tax authorities.

Recently the apex court has held that duty drawback receipt/DPEB benefits do not form part of net profits of eligible industrial undertaking for purposes of section 80I/80IA/80IB of the 1961 Act.

These benefits may be restored by the Ministry of Finance to the textile industries located in backward areas like Daman, Silvassa, Dadra and Nagar Haveli which do not have proper infrastructure.

2. Under DTC, MAT should be eliminated.

3. Extension of tax incentives under section 10A/10B of the Act
Section 10A of the Act provides 100% tax deduction of profits and gains derived by an undertaking established in free trade zone, export processing zone etc. from the export of articles or things (from the previous year in which the undertaking begins to manufacture or produce such articles or things) for a period of 10 consecutive AY's subject to the fulfillment of conditions laid down in the section.

Similarly, section 10B of the Act envisages a 100% tax deduction of profits and gains derived by an export-oriented unit ('EOU') from the export of articles or things or computer software for a period of 10 consecutive assessment years (from the previous year in which the undertaking begins to manufacture or produce such articles or things) subject to the fulfillment of conditions laid down in the section.

As per the current provisions of the Act, such deductions would not be available from AY 2012-13. It is recommended that such benefits should be extended to boost manufacture and export of garments.

4. Special Economic Zone ('SEZ') for garments manufacture
As per section 282(n) of the New Direct Tax Code, 2009 ('DTC') [which has been tabled for public debate in August 2009], benefits available to developer of SEZ (under section 80IAB) are sought to be continued for the unexpired period of the tax holiday.

However, benefits under section 10AA are sought to be removed by the DTC. This puts such units is a comparatively disadvantageous position as compared to other units/undertakings (say under section 80IA, 80IB, 80IAB etc) in respect of which tax incentives have been continued.

We urge that benefits (akin to the current section 10AA of the Act) should be provided to Apparel export units.

Even under DTC, either, a special mechanism for computation of profits of such Apparel export units or a continuation of benefits provision for the unexpired period of the tax holiday (akin to section 282(n) of the DTC) should be considered.


Must ReadView All

Textiles minister Smriti Irani lighting the lamp to inaugurate the 6th edition of the International Apparel and Textile Fair ‘VASTRA 2017’, in Jaipur. Courtesy: PIB

Textiles | On 22nd Sep 2017

Placement rate in textiles sector is 70%: Indian minister

The recent high growth of foreign direct investment (FDI) in the...

Apparel/Garments | On 22nd Sep 2017

New US FTC rule for RN used on textile product labels

The US Federal Trade Commission recently streamlined requirements...

Textiles | On 22nd Sep 2017

Messe Frankfurt acquires Source Africa, ATF textile shows

Messe Frankfurt, one of the world´s leading trade show organisers,...

Interviews View All

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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

September 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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