The Hindu Business Line : Exporters protest against I-T Dept move to tax sops

Members of the All-India Exporters Grievances Forum protesting against the Income-Tax Department in Mumbai on Tuesday over the Department's move to tax export sops. - Paul Noronha

Mumbai , Jan. 18

EXPORTERS gathered today at Mumbai's Azad Maidan to protest against "harassment" by the Income-Tax Department on tax deductions and export sops.

The I-T Department has been insisting that exporters pay tax on previously exempt export profits. The Department has insisted that deductions under 80 HHC could only be claimed if exporters did not show negative profits or their profit was not lower than the sum of the benefits under Section 28 (iii), which includes DEPB, duty drawback scheme and cash assistance.

The Department has also been asking exporters to pay the tax with retrospective effect.

I-T officers have been opening cases even though the decision of the special bench of the ITAT (Income-Tax Appellate Tribunal) hearing of November 17 2004 is still awaited.

Despite assurances from the Prime Minister, Union Commerce and Finance Ministers, little has been done to address the matter, they said.

Fifteen associations, such as FIEO, Chemexil, AEPC, CMAI and more, under the aegis of the All-India Exporters Grievances Forum (AIEGF), have been making representations to the Government to come up with a solution — by issuing a clarification immediately and amending the Income-Tax Act to rectify the anomalies.

Members of the AIEGF also planned to present a charter of demands to the Chief Commissioner of Income-Tax, Ms Urvashi Saxena.

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