Home breadcru News breadcru Association/Org breadcru FAITMA pre-budget memo to FM - withdraw NCC Duty on POY

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

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