FM announces extended support for textile exporters
30 Nov '07
3 min read
Period of validity: 01/11/2007 to 31/3/2008: Term of credit: 180 days for pre-shipment and 90 days for post-shipment, excepting the carpet sector for which the term would be 270 days for pre-shipment and 90 days (like other sectors) for post-shipment.Service tax will be exempted for exporters under three new services:
Storage and Warehousing services Specialised cleaning services (Fumigation and disinfection) Business exhibition services
The allocation for reimbursement of TED and CST has been raised from Rs.300 crore and Rs.600 crore in the second supplementary.
(iv) Presently, 6% interest is paid for delay in reimbursement of drawback claims beyond 30 days. For payment within 30 days, no interest will be payable.
The interest is payable for delay from the date of approval to the date of payment if delayed beyond 30 days.
Government have decided to extend a similar provision of payment of interest for delays in payment of terminal excise duty (TES) and Central Sales Tax (CST).
The process for payment of interest will be finalized shortly.
(v) Customs duty on PSF and PFY is being reduced from current 7.5% to 5%, and on other man-made fibres from 10% to 5%.
Customs duty on intermediates for PSF and PFY viz. polyester chips, DMT, PTA & MEG would also be reduced from 7.5% to 5% and on paraxylene (a raw material for PTA) from 2% to nil. No change in Customs duty for nylon chips, nylonyarn, caprolactum, rayon grade wood pulp and acrylonitrile.
Notification will be issued shortly. Respective Councils in the textile sector have requested revision of drawback rates. They have been asked to submit relevant data to the Drawback Committee which would study the proposal and make its recommendations to the Government. A decision in the matter would be taken based on the Drawback Committee's recommendations.”
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