However, the pendency of notifying the sector-wise remission rates under RoDTEP Scheme is creating a precarious situation and uncertainty for Indian exporters due to ambiguity w.r.t. pricing of goods and thereby impacting Indian exports. The
However, the pendency of notifying the sector-wise remission rates under RoDTEP Scheme is creating a precarious situation and uncertainty for Indian exporters due to ambiguity w.r.t. pricing of goods and thereby impacting Indian exports. The
Synopsis
The scheme is touted as a replacement for the Service Export from India Scheme and is on the same lines as Remission of Duties and Taxes on Exported Products (RoDTEP) for goods exports.
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Aimed at refunding taxes already paid back to services exporters, DRESS is proposed to include all service exports created in India and exported from the country in modes 1 and 2 of service delivery.
NEW DELHI: Ahead of the new foreign trade policy, industy has proposed a new incentive scheme for services exports that would give higher benefits to exporters in the MSME sector.
The Services Export Promotion Council has suggested the government to consider a Duty Remission on Export of Services Scheme (DRESS) to refund taxes to services exporters wherein small and micro exporters would be eligible for a 7% incentive while the large ones would get 4%. The scheme is touted as a replacement for the Service Export from India Scheme and is on the same lines as Remission of Duties and Ta
Synopsis
Stakeholders from the textile sector, which remains one of the country’s key foreign exchange earning sectors, have also given thumbs up to the budget.
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Besides big players, the country’s MSME exporting firms have also welcomed the measures announced in the budget.
For Indian exporters who have been sailing against the rough tides for quite some time now, the Budget 2021 remains a mixed bag.
While the country’s exporting community hailed the specific policy measures to uplift business sentiments, it also flags missing gaps that needed speedy redressal.
It s noteworthy that India’s share in global merchandise exports currently stands at a paltry 1.67%. The industry body Confederation of Indian Industry (CII) in its Pre-Budget Memorandum 2021-22 had advocated the need for raising it to 5%. However, to achieve this ambitious target, the country certainly needs to improve its infrastructure and enhance its capacity utilisation.