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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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ORGANISATION COVERING CREDIT RISK : There are 40 organization providing cover for credit risk, the worldover. They are all member of union International Union of credit and Invest
Duty Entitlement Pass Book : Under the Duty Entitlement Pass Book scheme, an exporter shall be eligible to claim credit as a specified percentage of FOB value made in freely conve
Negotiation of Export Documents under Letters of Credit : Where the exports are under letter of credit arrangements, the banks will negotiate the export bills provided it is drawn
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DUTY EXEMPTION SCHEME : Registered exporters are eligible for the facility of duty free import of raw materials, components, packing materials, etc., required for manufacture of t
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