ANNOUNCEMENT 14 Jan 2009In January 2009, the government of India announced a change in the tax legislation for exporters.
NUMBER OF INTERVENTIONS
Public Notice No. 132 (RE-2008) / 2004-2009
On 14 January 2009, the Government of India, vide Public Notice No. 132 (RE-2008) / 2004-2009, extended the benefits of the Vishesh Krishi and Gram Udyog Yojana (VKGUY) Scheme to worked vegetable carving material and articles.
The benefits were declared admissible with retrospective effect from 1 April 2008.
The VKGUY Scheme is intended to promote exports of agricultural produce, minor forest produce, etc., by providing exporters of the notified products with duty credit scrips of upto 5% FOB value of their exports. The scrips can be used for payment of import duty on specified inputs, for payment of excise duty and service tax (in some cases), and can also be sold in the market.
The VKGUY Scheme was first operationalized in 2005, and is also a part of the Foreign Trade Policy 2009-2015.
The implementation date is set to 14 January 2009, as trade flows may only have been affected after the announcement.