Home / Knowledge / News / Textiles / Reduce excise on textile machinery, TMMA tells FinMin
Reduce excise on textile machinery, TMMA tells FinMin
07
Mar '12
Excise duty on all items of textile machinery, all parts, components and accessories should be 8%, instead of 10% and second-hand textile machinery should not be allowed duty-free access, says the Textile Machinery Manufacturers Association (TMMA).

Among its many pre-budget recommendations, TMMA has recommended that imports of dedicated parts, components and accessories of shuttle-less looms, compact ring spinning machines and cone winding machines which are not made in India so far, should attract zero percent duty, to facilitate manufacturing of high tech machinery to bridge the technology gap.

It has also suggested to the Finance Minister that, floor level of customs duty on all items of textile machinery in general should be 7.5% and that the rate of duty on raw-materials, parts, components & accessories should be less than that on complete machinery and should be 5% instead of 7.5 percent.

It also wants the supply of local textile machinery under EPCG and EOU status to be treated at par and 200% weighted deduction on R&D expenditure incurred by all companies and partnership/ proprietary units.

Free import of textile machinery in second hand machines should be prohibited or restricted by stipulating a specified minimum residual life of 10 years and further subject to the condition that the second hand machinery should not be older than 5 years.

Imported second-hand textile machinery should not be given subsidy under the Technology Up-gradation Fund Scheme (TUFS) and its derivatives namely 20% CLCS and 15% CLCS Scheme, in the name of modernization. The Government should not be a party to the technological obsolescence as technology changes in a 3 to 5 year period.

Government should put ban on import of second-hand shuttle-less looms with weft insertion rate less than 700 meters per minute. Tax break for a period of 5 years for any unit manufacturing hi-tech item of textile machinery with or without foreign collaboration.

TMMA has also recommended launching a TUFS dedicated to the Indian textile machinery industry. The fund should have an interest reimbursement outlay of Rs. 250 crores for the 12th Five-Year-Plan and should be based on similar principles as the existing TUFS.

TUFS benefits should be given for expansion and modernization of existing textile machinery manufacturing companies, acquisition of technical know-how from overseas countries.

Industry segments regarded as weak or non-existing (rotors spinning, automatic winding, weaving, processing, knitting and industrial sewing equipment) should be eligible for 10% capital subsidy in addition to interest reimbursement.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 10th Dec 2016

India’s 2016-17 cotton import to touch 17 lakh bales

The import of cotton from international markets by spinning mills in...

Textiles | On 10th Dec 2016

US textile & apparel imports fall 6.50% in Jan-Oct ’16

The import of textiles and apparel by United States dropped 6.50 per...

Unipar Carbocloro plant in the city of Cubatão, São Paulo state. Courtesy: Wikipedia

Textiles | On 10th Dec 2016

Brazil’s CADE clears Solvay’s 70.59% stake sale in Indupa

Brazil’s administrative council for economic defence (CADE) has...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Kerem Durdag
Biovation II LLC

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

Suresh Patel
Sidwin Fabric

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Tony Ward
Tony Ward

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

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
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