SME Times News Bureau | 21 Mar, 2012
Disappointed over the Union Budget 2012-13, Indian small and medium scale exporters have demanded for complete income tax exemption on their income.
"We want only one single benefit and this is the tax benefit under Section 80 HHC which provides complete income tax exemption on export income," said Delhi Exporters Association (DEA) President S.P Agarwal in a press release issued in New Delhi on Tuesday.
He said this provision was there in the past sometime and this has helped Indian exports to grow. "So, all we want is revival of this section and may inform the government that tax free income and real exemption from Service Tax and VAT will amount for 100 percent increase in export figures." Agarwal added.
"We request the Finance MInister to kindly make suitable amendment in the finance bill and get it passed," he mentioned.
On the Budget announced recently, he viewed that around 1,50,000 micro, small, medium and large exporters are highly disappointed with the budget.
"We had experienced a bad past and hoping for a sunrise, which would not happen. Our cost of production is high because prices of everything especially raw materials have gone up and we are still exporting lot of taxes in the form of service taxes and VAT," he said.
"Though, the exporters are exempted from these taxes but it is most unfortunate that we have to pay these taxes first and the apply for the refund which is a very difficult , troublesome, expensive, and cunbersome procedures," Agarwal added.
