07-12-2012, 04:09 PM
EXPORT INCENTIVES
Export Incentives.ppt (Size: 334 KB / Downloads: 45)
INTRODUCTION
The Government of India has framed several schemes to promote exports and to obtain foreign exchange.
These schemes grants incentive and other benefits.
Support measures provided by the government to exporters to encourage investment in the export sector.
Motivates exporters to increase export sales as well as perform competitively in the export market
SALES TAX/VAT EXEMPTION
An exporter has to register with sales tax/value added authorities.
No tax is payable for goods meant for exports.
Its an indirect tax that manufacturer collects from customer & deposits to the Government.
April 2005, Sales tax was replaced by VAT.
The goods exported are zero rated under VAT.
Documents required are as follows –
Export contract or order & Commercial Invoice
Bill of lading/ Air-way bill.
Letter of credit or proof of payment.
SEZ
To create an internationally competitive & smooth working environment for exports in India.
SEZ is deemed to be a foreign territory for the purposes of trade operations, duties & tariffs.
Goods & services going into SEZ from DTA are treated as exports & vice versa treated as imports.
14 functional SEZs in India & around 60+ are approved & are under stages of eshtablishment.
Mahindra World City is India’s first SEZ that has approved for three sector-specific SEZs – IT, Apparel & Fashion & Auto Ancillaries.
Excise Exemption
Excise is a tax on production or manufacture of goods.
Excisable goods can not be removed from the place of manufacture unless prescribed excise duty has been paid.
Exports under claim of Excise Rebate