Home / Knowledge / News / Textiles / Govt likely to extend tax breaks beyond 2012

Govt likely to extend tax breaks beyond 2012

25
Jan '11
In view of the recommendations of an expert panel, the government is expected to extend the tax break facility for few new industries even beyond 2012, so as to help their survival even during global recession.

As per the findings of the panel on direct tax law, if the tax benefit is done away with, it would really become impossible for the domestic firms to retain their competiveness in the world market. Thus, it has been recommended in the draft bill of the Direct Tax Act 2012 to continue the tax concessions for 16 categories of industries even after 2012, and to pull out the same in phases over the next five years.

Initially the government said that, it won't be extending the facility beyond June 30, 2012, but then it is necessary to do so to attract more investments in the concerned industries.

However, in order to enjoy these tax concession facilities for a longer period, the new industries will have to be established in line with certain specific norms.

As per the proposed tax bill, the government would allow complete tax exemption to the new industries for the first two years as they go commercially functional, while these industries would be granted 50 percent tax exemption or will have to pay 50 percent of the total tax amount for the third and fourth year.

Further, they would be charged at 75 percent of the actual tax rate for the fifth year, while from the sixth year onwards usual tax rate of 37.5 percent would apply.

Initially, the tax concession facility would be continued for 16 categories of new industries, and with passage of time as these industries would gain self reliance, gradually the facility would be withdrawn. The facility would be continued for the newly established units involved in production of textile machinery, high-value garments, textiles, jute products and similar other industries.

The government withdrew the facility from 11 industries in 2004, from seven industries in 2005 and five industries in 2006.

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Textiles | On 22nd Feb 2020

Pharr sells Pharr High Performance to Coats Group

Pharr, a provider of differentiated textile products and assorted...

Pic: Shutterstock

Textiles | On 22nd Feb 2020

TOAI highlights importance of textiles in auto industry

The first edition of the conference 'Textile Opportunities in a...

Pic: Shutterstock

Textiles | On 22nd Feb 2020

Cocona's 37.5 fibres to have new biodegradable additive

All of the 37.5 staple fibres and filament yarns by Cocona, will now...

Interviews View All

Nishank Patel, Shri Dinesh Mills Limited

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Top executives, Textile industry

Top executives
Textile industry

Defining MSMEs on the basis of turnover makes it simpler to do business

Dinaz Madhukar, DLF Emporio and DLF Promenade

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Lin Jing,

Lin Jing

Jiangsu New Victor is a Chinese mechanical equipment manufacturing...

Siddhachakra Weaving (Badiya Fashion),

Siddhachakra Weaving (Badiya Fashion)

Ahmedabad-based Siddhachakra Weaving Pvt Ltd was established in 2011 under ...

Madhu Sudhan Bhageria,

Madhu Sudhan Bhageria

Incorporated in August 1990, Filatex India Ltd manufactures manmade...

Eamonn Tighe, Nature Works LLC

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Asif Rahman, MIP

Asif Rahman
MIP

MIP is a manufacturer and distributor of high-performance textiles and...

Mark Brill, Birmingham City University (BCU)

Mark Brill
Birmingham City University (BCU)

<div>A technological breakthrough could see people getting messages about...

Divvya and Nidhhi Gambhir, Walnut

Divvya and Nidhhi Gambhir
Walnut

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

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

Varsha Wadhwa, VW

Varsha Wadhwa
VW

Coming from a family that ran a business of jute and linen mills since...

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

Leave your Comments


February 2020

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


Advanced Search