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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.
Government publishes administrative reports of various departments reports of commissions and committees India A Reference Annual etc, The sources of locating government publica
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Spot Rate : The current exchange rate is usually the spot rate. It is the rate at which most foreign exchange transactions are carried out. If the contract to buy or sell foreign
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BASIC PRINCIPLES OF ECGC OPERATION : There are two basic principles on which ECGC works: i) Spread of risks: An exporter is required to insure all the shipments that may be m
Legal Perspective : Besides commercial necessity, documents for exports have a legal perspective. All over the world, laws regulating export-import trade as we11 as movement of fo
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OBJECTIVES After studying this unit, you should be able to: 1. Explain the meaning of exchange rate; 2. Describe various types of exchange risk; 3. Discuss the meas
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