Thanking Mr Kelkar and the committee members for considering and recommending to the government a number of FIEOs suggestions, the FIEO chief opined that if they were accepted they would go a long way in helping exporters achieve a quantum jump in exports, in addition to improving the general tax administration.
In his presentation before the committee, Mr Patodia pleaded for full restoration of exemptions under Section 80-HHC of the Income Tax Act and related Sections such as 80 HHD and 80-0 for project and consultancy exports and Sections 10A & 10B of the same act for hundred per cent export-oriented units (EOUs) and units set up in export processing zones (EPZs) and special economic zones (SEZs). Phasing out the exemptions, he cautioned, would adversely affect exports. Further, the exemptions under Section 10A should be continued for a period of 10 years from the date of establishment of SEZs, he stated. He also wanted the exemptions to be available uniformly to all the new and old units covering all activities, including inter-unit transfer, international trading (goods imported and exported without anything to do with the domestic market). Besides, the domestic sales to EOUs and SEZs should be considered as physical exports and remittances be allowed in convertible currency. The FIEO chief also appealed to the committee to continue the duty entitlement passbook scheme at least till the end of present EXIM policy.