ANNOUNCEMENT 01 Apr 2013In April 2013, the government of India announced a change in the tax legislation for exporters.
NUMBER OF INTERVENTIONS
Notification 28/2009-2014 (RE- 2013)
On 18 April 2013, the Indian Ministry of Commerce and Industry (according to Notification No. 3(RE-2013)/2009-2014) announced the annual adjustments of the Incremental Export Incentivisation Scheme (IEIS) for the year 2013-14.
According to the notifcatoin, exports to 53 countries in Latin America and Africa are newlyeligible for the incentive. Under the prior regulation, such incentives were only available for exports to Europa, the USA and Asian nations. The incentive itself has remained unchanged and is specified as follows.
The exporter shall receive duty credit scrip worth 2 percent of the export growth realized compared to the same period in the prior year. Exports of the following products are excluded from the scheme:
Furthermore, exports to Singapore, the UAE and Hong Kong have been excluded from the IEIS.
The IEIS is part of the Indian Foreign Trade Policy 2009-2014 and is amended on an annual basis. Under this scheme, an exporter is entitled a duty credit scrip for any export growth realized in the given year. A duty credit scrip is a certificate that can be used to pay taxes and duties. The scheme covers exports to the USA, Europe, Asia and 53 countries in Latin America and Africa.
The stated incentive has been extended vide Notification 28/2009-2014 (RE- 2013) for a further year.