Tax Breather for Indian Exporters
The Prime Minister of India ("PM"), with a view to give a fillip to the export market of India has referred certain tax issues to the Economic Council ("EC") for their consideration.
The issues referred by the PM to the EC are:
The other issues of growing unrest among Indian exporters were the levy of tax on profits derived from the Duty Entitlement Pass Book Scheme (an import scheme available for exporters) and denial of deduction in respect of profits from exports (section 80HHC of the Income Tax Act, 1961). In this regard, the PM has issued a directive to the Indian revenue department to keep the ongoing tax proceedings and recovery of tax on these profits in abeyance.
If considered and implemented, these proposals would bring a boost to Indian exports.
Source: Times of India dated April 9, 2005, "Tax Breather for exporters." page 15,