Business Daily from THE HINDU group of publications
Sunday, Aug 06, 2006
Business Daily from THE HINDU group of publications Sunday, Aug 06, 2006 |
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Industry & Economy
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Taxation CST reimbursed for SEZs in Chennai, Kochi Our Bureau
Many SEZ units have been complaining that sizeable amounts have been locked up in dues.
Chennai , Aug. 5 It is some good news for units located in Chennai and Kochi SEZs. The Ministry of Commerce has released Rs 20 crore and Rs 10 crore, respectively, to the two SEZs for reimbursement of Central Sales Tax (CST). Disclosing this at an Open House Meet organised here by the Export Promotion Council for EOUs and SEZ units, Mr G.K. Pillai, Special Secretary, the Ministry of Commerce and Industry, said that the Ministry awaited funds from the supplementary budget to clear up all its CST reimbursement dues.
More dues
The Rs 20-crore allocation to Madras SEZ meets only half the requirements. CST reimbursement dues approved by the Development Commissioner of the SEZ is Rs 39 crore and there are more applications awaiting approval. The delays in payment of CST dues to units in SEZs and EOUs have been a sore points with the units. Many units have been complaining that sizeable amounts have been locked up in dues. For instance, Subburaj Spinning Mills Pvt Ltd — an EOU based in Sankarnagar, Tamil Nadu — complained that it needed to receive Rs 1.61 crore from the Government. Another company, Polyspin Ltd, said it had to receive Rs 9 lakh from the Government. The recent Foreign Trade Policy has promised payment of interest on such delayed payments. "But the guidelines for payment of the interest have still not been issued by the DGFT," notes a `agenda points' document prepared for the Open House Meeting. A RBI representative pointed to a provision under which banks were allowed to lend against incentives receivable from the Union Government.
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