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INDIA
BUSINESS WORLD -
JANUARY 2006
THE MONTH THAT WAS EXPORTERS GET RELIEF IN TAX PAYMENT
The income-tax department has given some respite to large exporters on payment of tax dues on profits from sale or transfer of credits on DEPB and duty free replenishment certificate (DFRC). CBDT in a circular issued here has stated that penalty and interest on outstanding dues of large exporters would be waived and that they would be allowed to spread payment of the dues over a fiveyear period.
The ministry through a recent amendment to the I-T Act, 1961 proposed to exempt only small exporters, that is those with income of less than Rs 10 crore, from paying tax with retrospective effect on profits earned from transfer of DEPB credits and DFRC. The change was to take effect retrospectively from assessment year 1998-99.
The CBDT circular gives some relief to larger exporters. The circular states that interest or penalty is not to be levied on demands to be made of the exporters consequent to the Taxation Laws (Amendment) Act, 2005 on income attributed to profit from sale of DEPB credits and DFRC. |
