ANNOUNCEMENT 02 Mar 2009
In March 2009, the government of India announced a change in the tax legislation for exporters.
NUMBER OF INTERVENTIONS
Notification No. 92 (RE-2008) / 2004-2009
PUBLIC NOTICE NO. 156/2008
On 2 March 2009, the Government of India vide Notification No. 92 (RE-2008) / 2004-2009 read with Public Notice No. 156 / 2008, has permitted the issue of duty credit scrip under the Market Linked Focus Product Scheme (MLFPS) at the rate of 2% FOB value of exports to exporters of leather products and specified garments to the EU and USA.
The MLFPS typically grants exporters duty credit scrips at the rate of 1.25% FOB value of exports. Duty credit scrips are utilisable for the payment of dues to the government, and under some conditions, transferable in the open market as well.