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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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FINANCIAL GUARANTEES: Exporters require adequate financial support from banks to carry out their export contracts; ECGC's guarantees protect the banks from losses on account of th
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Amount: The loan amount is decided on the basis of export order and the credit rating of the exporter by the bank. Generally the amount of packing credit will not exceed FOB value
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FOREIGN EXCHANGE : Foreign exchange, as defined under Foreign Exchange Regulation Act. 1973 is foreign currency and includes: i) All deposits credit and balance payable in fore
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