Modi govt decided to provide slew of tax incentives including exemption from excise and custom duties
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New Delhi: To promote the domestic shipbuilding industry, the Modi government on Thursday decided to provide slew of tax incentives including exemption from excise and custom duties on all raw materials and parts used for making vessels.The Centre will give exemption to the ind-ustry from customs and central excise du-ties on all raw material and parts for use in the manufacture of ships, vessels, tugs and pusher crafts.
Presently, certain specified ships are ex-empt from basic customs duty and Central Excise duty (CVD). However such ships or vessels manufactured in Export Oriented Units (EOUs) and cleared to domestic tariff area (DTA), are not eligible for exemption on raw materials.
The government plans to undertake a suitable amendment so as to provide that EOUs will be eligible for duty exemption on raw materials/parts consumed in manufacture of such ships and vessels which are cleared to DTA, even if such ships are exempt from basic customs duty and Central Excise or CV duty.
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( Source : deccan chronicle )
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