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Income-Tax Exemption: In order to promote exports, tax incentives are granted under the Income-Tax Act. The major incentives are :
1) All export profits derived from export of goods or merchandise outside India, except mineral oil and minerals and ores and services are exempted from the income-tax. The benefit is also available to supporting manufacturers/processors, selling goods or merchandise to an Export/Trading House for export.
2) Tax relief is provided on export of computer software and for import of system.
3) A deduction of 50% of the profits from project exports is granted to an Indian company or resident tax payer.
4) Five years tax holiday is provided to the units in Free Trade Zones/Export Processing Zones and 100% Export Oriented Units.
The exporters or manufacturers are required to enclose with their tax return a report in the prescribed form duly signed by a Chartered Accountant.
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ECGC SCHEMES FOR COVERING EXCHANGE RISKS: The ECGC has evolved two schemes to provide greater protection to exporters of capital goods and turnkey project against the risk of fluc
MAJOR PRODUCTS EXPORTED : Look at Table which shows the major products exported from India and the changing pattern thereof over the last 40 years. It is clear from the above ta
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INTRODUCTION : Export business has become very complex and highly risky. Insolvency rate is on the increase. Balance of payment difficulties have severely affected the capacity of
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Procedural Formalities : The ECGC has three types of claim forms: (i) Form No.501 for claims rising due to non payment for goods accepted by the buyer, (ii)Form No.502 for claims
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PROCEDURE FOR MAKING A CLAIM : A claim will arise when any of the risks insured under the policy materialises. If an overseas buyer goes insolvent, the exporter becomes eligible f
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