FAITMA pre-budget memo to FM - withdraw NCC Duty on POY
18 Nov '06
2 min read
On 1st March 2006, further amendment was made by Notification No.16/2006-CE to give similar benefit to yarn manufactured from goods falling under Heading No.54.06.10 i.e. yarn put up for retail sale.
However, NCCD continues to be levied on partially-oriented yarn (POY).
There are two valid grounds why this levy should be discontinued, which are:
1. Although, Hon'ble Parliament was assured that the tax was imposed only for one year, it is still continuing, which is contrary to the assurance, and
2. Polyester filament yarn is not a luxury item as then prescribed, but it is meant for production of fabrics for common man, and hence it attracts excise duty of 8 percent only.
In the light of the above, FAITMA will be highly obliged, if NCCD of 1 percent on POY is abolished in the forthcoming Budget.
Click here to view the Pre-Budget Memorandum – 2007-08 report.
Federation of All India Textile Manufacturers' Associations
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
