The Hindu : More sops for textile sector

Online edition of India's National Newspaper
Friday, May 16, 2003

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More sops for textile sector

By Our Special Correspondent

NEW DELHI MAY 15. Yielding to the demands from his party, the Union Finance Minister, Jaswant Singh, today announced further concessions for the textiles sector. The latest decision practically overrules the announcements made in his reply to the Finance Bill in the Lok Sabha on April 30.

As per the announcement, powerloom weavers with an annual turnover of Rs. 35 lakhs (earlier Rs. 30 lakhs) will get excise duty exemption for the first clearance of Rs. 25 lakhs (the earlier limit was Rs. 20 lakhs) during the year. Similarly, exemption will also be available to the manufacturers of shoddy blankets, terry towels, fabrics made from monofilament, rubberised textile fabrics, woven and unprocessed cotton belting and the round mesh mosquito net fabric.

For the small or self-employed manufacturers of readymade garments (unbranded or bearing the brand of the manufacturer), the annual turnover limit has been raised to Rs. 40 lakhs from Rs. 30 lakhs earlier which will make them eligible for excise duty exemption for the first clearance of Rs. 30 lakhs (earlier limit was Rs. 25 lakhs) during the year.

Moreover, incidental processes such as putting price tags, washing instructions or altering the garments done by the traders or retailers would be fully exempt to avoid their coming under any kind of harassment, an official note said.

The Minister also altered the scheme for a one-time credit announced on textile inputs lying in stock as on April 1, 2003, on the basis of self-declaration as given by the manufacturers and traders themselves.

There would be no verification of the stocks by Government authorities and the date for declaring such stock would now be May 26 this year. This date would not be extended further.

Besides, for stock valuation, the earlier limit of Rs.. 10,000 per loom has been increased to Rs. 20,000 per powerloom of stock of yarn and finished goods. In other words, Income-Tax authorities would not pose any questions about the declared stock worth Rs. 20,000 per loom and no retrospective action would be taken for concealing this stock in the past.

The Ministry has also given the option to job workers in the textile industry to remain entirely outside the purview of Central excise duty.

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