Govt to give more Indirect Tax Incentives to domestic shipbuilding industry
Updated: Nov 26, 2015 01:37:05pm
New Delhi, Nov 26 (KNN) The government has decided to provide further indirect tax incentives to domestic shipbuilding industry, under which it will give certain exemption from customs and central excise duties.
The government will provide “Exemption from customs and central excise duties on all raw material and parts for use in the manufacture of ships/vessels/tugs and pusher crafts etc,” said an official release.
Presently, certain specified ships/vessels are exempt from basic customs duty and Central Excise duty (CVD).
Consequently, for such ships/vessels manufactured in Export Oriented Units (EOUs) and cleared to domestic tariff area (DTA), the EOUs are not eligible for exemption on raw materials/parts of such ships/vessels etc.
“Suitable amendment is being made to the relevant notifications so as to provide that EOUs will be eligible for duty exemption on raw materials/parts consumed in manufacture of such ships/vessels etc which are cleared to DTA, even if such ships/vessels are exempt from basic customs duty and Central Excise/CV duty,” said the release.
Simultaneously, the requirement of manufacturing of ships/vessels/ tugs and pusher craft etc in a custom bounded warehouse under the provisions of Section 65 of the Customs Act, 1962, for availing the customs and excise duty exemptions has also been done away with.
“Instead, these exemptions will now be subject to actual user condition,” it added.
At present, the indirect tax incentives available to the shipbuilding industry are –
Exemption from basic customs duty and additional duty of customs (CVD) on all raw material and parts for manufacturing of ships/vessels/tugs and pusher craft etc, subject to the condition that such manufacturing takes place in a custom bounded warehouse under the provisions of Section 65 of the Customs Act, 1962.
Exemption from central excise duty on steel procured domestically for manufacturing of ships/vessels/tugs and pusher craft etc in a custom bounded warehouse under the provisions of Section 65 of the Customs Act, 1962. (KNN Bureau)
The government will provide “Exemption from customs and central excise duties on all raw material and parts for use in the manufacture of ships/vessels/tugs and pusher crafts etc,” said an official release.
Presently, certain specified ships/vessels are exempt from basic customs duty and Central Excise duty (CVD).
Consequently, for such ships/vessels manufactured in Export Oriented Units (EOUs) and cleared to domestic tariff area (DTA), the EOUs are not eligible for exemption on raw materials/parts of such ships/vessels etc.
“Suitable amendment is being made to the relevant notifications so as to provide that EOUs will be eligible for duty exemption on raw materials/parts consumed in manufacture of such ships/vessels etc which are cleared to DTA, even if such ships/vessels are exempt from basic customs duty and Central Excise/CV duty,” said the release.
Simultaneously, the requirement of manufacturing of ships/vessels/ tugs and pusher craft etc in a custom bounded warehouse under the provisions of Section 65 of the Customs Act, 1962, for availing the customs and excise duty exemptions has also been done away with.
“Instead, these exemptions will now be subject to actual user condition,” it added.
At present, the indirect tax incentives available to the shipbuilding industry are –
Exemption from basic customs duty and additional duty of customs (CVD) on all raw material and parts for manufacturing of ships/vessels/tugs and pusher craft etc, subject to the condition that such manufacturing takes place in a custom bounded warehouse under the provisions of Section 65 of the Customs Act, 1962.
Exemption from central excise duty on steel procured domestically for manufacturing of ships/vessels/tugs and pusher craft etc in a custom bounded warehouse under the provisions of Section 65 of the Customs Act, 1962. (KNN Bureau)
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