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

Courtesy: Myntra

Apparel/Garments | On 3rd Dec 2016

Myntra to be EBITA positive by FY18: CEO Narayanan

Myntra is on track to achieve sustainable growth and be EBITA...

Courtesy: India ITME Society

Textiles | On 3rd Dec 2016

India ITME 2016 opens with over 1050 exhibitors

The India International Textile Machinery Exhibition (India ITME)...

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Interviews View All

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

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

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Kai Poehler
Voith Paper GmbH & Co. KG

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

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search