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    India Proposes New Tax Rebate Proposals

    2011/9/19 10:10:00 48

    India Tax Rebate Plan Proposal

    The India government will inform the AIR tax rebate schedule in 2011-12. To this end, the government formed a committee in January 2011, headed by Mr. Shri Saumitra Chaudhuri, a member of the AIR tax planning committee.


    In view of the government's decision to end the DEPB (tax authority registration) plan in September 30th this year, the Commission was entrusted with the responsibility to make recommendations on the rebate rates of these traditional export commodities under the DEPB plan.


    The DEPB plan has been implemented since 1997. At present, the plan covers 2130 projects. To be in one Tax rebate plan It is a challenge to cover these products and allocate the appropriate rebate rate, whether from the perspective of product classification or from the perspective of tax rebate. As a result, the amount of all products of the tax rebate program is about 4000, compared with 2835 at present.


    Broadly speaking, most of the existing tax rates already covered in the tax rebate plan will be slightly reduced. The main reduction is basically. Customs duties Crude oil has been cut from 5% to zero, and the central consumption tax of diesel has been reduced from 4.40 rupees / litres to 2.40 rupees / litres. In most industries, crude oil enters the product chain of many products, and is used as crude oil input, and diesel is also used for power generation in self owned power plants.


    In addition, the import duty of silk yarn dropped from 30% to 5%. Yes Silk fabric The tax rebate rate of silk clothing and silk carpet industry has a negative effect, because these industries import spun silk as the main production input. The reduction is limited to 30%-50%. Although the tax rebate rate for most other products is very small, the aim is to ensure that the existing tax rate does not exceed 10%, but the actual reduction is far greater than 10%, so as to minimize the difficulties faced by exporters. In some products, leather goods and leather bags, the tax rebate rate has actually been raised.


     

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