Industry & Economy
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Exports & Imports
Full restoration of 80HHC sought for export earnings
G. Gurumurthy
Coimbatore
,
June 30
THE Tirupur Exporters Association (TEA) has petitioned the Finance Minister for full restoration of income-tax exemption on the export earnings under Section 80HHC to enable plough-back of profits on plant modernisation and technology update by the garment sector.
The association has, in a communication to Mr P. Chidambaram, however, said that in the event of the Government being faced with constraints in extending the total exemption, it may tax the export earnings at a modest rate of 0.25 per cent.
This levy could be collected straight from the export remittances credited at the bank account by advising the banks themselves transferring the amount equal to 0.25 per cent from the realised remittance into the Government account.
Such a move will not only help the Government mop up revenue as direct tax but will also simplify the tax collection procedure. There would not be any room for litigation between the exporters and the I-T department, the TEA President, Mr A. Sakthivel, has said, adding this procedure could be introduced in the Finance Bill for 2004-05.
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