ANNOUNCEMENT 31 Mar 2010

In March 2010, the government of India announced a change in the tax legislation for exporters.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



PUBLIC NOTICE No. 53 / 2009-14
http://dgft.gov.in/exim/2000/pn/pn09/pn5309.htm


Inception date: 01 Apr 2010 | Removal date: 31 Mar 2015
Still in force

Tax-based export incentive

On 31 March 2010, the Indian Ministry of Commerce & Industry provided an export incentive to apparels (readymade garments) exports to the EU. Exports registered between 1 April 2010 and 30 September 2010 are eligible for the incentive.


The incentive is in the form of credit scrips worth 2% of the exported value. The scrip can be used for the payment of arrears to the government including import duties on future imports.

The incentive, although announced temporarily, has been extended every year under the Foreign Trade Policy 2009-2014, which expired on 31 March 2015.

AFFECTED SECTORS

 
Inception date: 01 Apr 2010 | Removal date: 30 Sep 2010
Still in force

Tax-based export incentive

On 31 March 2010, the Indian Ministry of Commerce & Industry provided an export incentive to apparels (readymade garments) exports to the United States of America. Exports registered between 1 April 2010 and 30 September 2010 are eligible for the incentive.


The incentive is in the form of credit scrips worth 2% of the exported value. The scrip can be used for the payment of arrears to the government including import duties on future imports.

The incentive expired on 30 September 2010, but was re-introduced from 1 April 2011 until the end of the Foreign Trade Policy 2009-2014, which expired on 31 March 2015 (see related state acts).