Upset over sharp reduction in the rates of duty drawback, or tax refund, exporters today said the move will have adverse impact on employment in sectors like apparel, leather, handicraft and metal.
“Reduction of drawback for apparel, leather, metal handicraft, carpets, certain engineering products will have a bearing on employment,” said A Sakthivel, President of Federation of Indian Export Organisation (Fieo).
On Saturday, the Central Board of Excise and Customs (CBEC) slashed rates of duty drawbacks — refund of import duties on raw materials used in exports — by up to 30 per cent for several items.
The new rates are effective from tomorrow.
“Reduction in rate will further affect the exports of sectors which are showing negative or single digit growth,” Fieo chief said.
Although, the country’s exports have risen by 28.
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018