(MENAFN- KNN India) New Delhi, Apr 23 (KNN) Small exporters in India have requested the government to extend the amnesty scheme for one-time settlement of default in export obligations until September 2024.
The appeal comes from a Ludhiana based Hand Tools Association where its President, S.C. Ralhan stated that many small exporters were unable to take advantage of the scheme due to their obligations to make payments to Micro, Small, and Medium Enterprises (MSMEs) within 45 days.
The Finance Act 2023 introduced Section 43B(h) in the Income Tax Act, which stipulates that larger companies cannot deduct expenses from their taxable income if they fail to pay MSMEs within 45 days of a written agreement.
Consequently, small exporters had to divert their funds to meet these payment deadlines, leaving them with insufficient resources to apply for the amnesty scheme.
Ralhan urged the government to continue the amnesty scheme until September 2024, as the last date for payment of customs duty plus interest ended on March 31, 2024.
"Due to this, we diverted our funds to make payments and several of us were not able to apply for the amnesty scheme. We urge the government to continue the scheme till September," Ralhan stated.
The scheme, announced in the new Foreign Trade Policy (FTP), allowed exporters a one-time settlement of default in export obligations by paying all customs duties that were exempted, proportional to the unfulfilled export obligation, along with 100 per cent interest on such exempted duties.
Another exporter expressed that an extension of the scheme until September would enable them to apply and avail the benefits.
Meanwhile, a government official stated that the commerce ministry is currently compiling data regarding the utilisation of the scheme's benefits, a process that is expected to take a few more days.
(KNN Bureau)
MENAFN23042024000155011030ID1108129258
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.