Government has issued three notifications No.115/2007-Customs, No. 42/2007-Service Tax and No.43/2007-Service Tax, giving effect to the announcement made by the Finance Minister on 29.11.07 in the Lok Sabha. These three notifications provide relief by way of customs duty and service tax exemptions.
Notification No.115/2007-Customs reduces basic customs duty on following items relating to textile sector: • Polyester filament yarns and polyester staple fibres from 7.5% to 5%; • Other man made filament yarns namely, acrylic, viscose etc (excluding nylon filament yarns) from 10% to 5%; • Other man made staples fibres namely, acrylic, viscose etc (excluding nylon staple fibres) from 10% to 5%; • Spun yarns of man made staple fibres and filament yarns (excluding nylon fibres) from 10% to 5%; • Polyester chips from 7.5% to 5%; • Fibre intermediates viz. Dimethyl terephthalate (DMT), Pure terephthalic acid (PTA), and Mono ethylene glycol (MEG) from 7.5% to 5%; and • Para-xylene from 2% to zero.
There is no change in basic customs duty on nylon filament yarn / fibres, nylon chips and caprolactum and continues to remain the same. There is also no change in basic customs duty on acrylonitrile and rayon grade wood pulp.
Notification No.43/2007-ST dated 29th November, 2007 provides relief by way of refund of service tax paid on business exhibition service [section 65(105)(zzo)] provided to manufacturer-exporters of textile goods such as carpets, textile floor coverings, articles of apparel and other made up textile articles, who are registered as exporter with any of the specified organizations.
marketing@alchempro.com
