Interviews
Textiles Minister hails Budget Proposals for textiles sector
08 Jul '09
4 min read
(5) Interest subvention of 2% on pre-shipment credit extended beyond current deadline of 30th September, 2009 to March 31, 2010
(6) Sun-set clauses for deduction in respect of export profits under sections 10A and 10B of Income Tax Act extended by one more year
(7) Fringe Benefit Tax to be abolished
SERVICE TAX
(8) Two taxable services, namely, 'Transport of goods through road' and 'Commission paid to foreign agents' to be exempted from the levy of service tax, if the exporter is liable to pay service tax on reverse charge basis. However, present cap of 10% on commission agency charges is retained. Thus there would be no need for the exporter to first pay the tax and later claim refund in respect of these services.
(9) For other services received by exporters, service tax exemption to be operated through the existing refund mechanism based on self-certification of the documents where such refund is below 0.25 per cent of FOB value, and certification of documents by a Chartered Accountant for value of refund exceeding the above limit
(10) Export Promotion councils and the Federation of Indian Export organizations (FIEO) to be exempt from service tax on the membership and other fees collected by them till 31st march 2010.
CUSTOM DUTY
(11) Custom Duty on Cotton waste and wool waste to be reduced from 15% to 10%
EXCISE DUTY
(12) Excise Duty on man made fibre and yarn to be increased from 4% to 8%
(13) Excise Duty on man made and natural fibres other than pure cotton beyond the fibre and yarn stage to be increased from 4% to 8% under the existing optional scheme – will ease the problem of credit accumulation
(14) An optional excise duty exemption to be provided to tops of manmade fibre manufactured from duty paid tow at part with tops manufactured from duty paid staple fibre.
(6) Sun-set clauses for deduction in respect of export profits under sections 10A and 10B of Income Tax Act extended by one more year
(7) Fringe Benefit Tax to be abolished
SERVICE TAX
(8) Two taxable services, namely, 'Transport of goods through road' and 'Commission paid to foreign agents' to be exempted from the levy of service tax, if the exporter is liable to pay service tax on reverse charge basis. However, present cap of 10% on commission agency charges is retained. Thus there would be no need for the exporter to first pay the tax and later claim refund in respect of these services.
(9) For other services received by exporters, service tax exemption to be operated through the existing refund mechanism based on self-certification of the documents where such refund is below 0.25 per cent of FOB value, and certification of documents by a Chartered Accountant for value of refund exceeding the above limit
(10) Export Promotion councils and the Federation of Indian Export organizations (FIEO) to be exempt from service tax on the membership and other fees collected by them till 31st march 2010.
CUSTOM DUTY
(11) Custom Duty on Cotton waste and wool waste to be reduced from 15% to 10%
EXCISE DUTY
(12) Excise Duty on man made fibre and yarn to be increased from 4% to 8%
(13) Excise Duty on man made and natural fibres other than pure cotton beyond the fibre and yarn stage to be increased from 4% to 8% under the existing optional scheme – will ease the problem of credit accumulation
(14) An optional excise duty exemption to be provided to tops of manmade fibre manufactured from duty paid tow at part with tops manufactured from duty paid staple fibre.
Ministry of Textiles
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