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Published on 21/02/2020 9:19:02 AM | Source: IANS

EEPC India seeks expansion of Sabka Vishwas Scheme to customs

Posted in Industry News| #India #Industry #Government #MSMEs

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Engineering exporters organisation EEPC India has called upon the Centre to expand the scope of legacy dispute resolution scheme -- Sabka Vishwas -- for the settlement of customs duty matters.

EEPC India requested the government to include settlement of non-fulfillment of obligations under the EPCG and Advance Authorisation Schemes under the 'Sabka Vishwas' ambit.

In a letter to the Central Board of Direct Taxes (CBDT), EEPC India stated that the Sabka Vishwas Scheme 2019 for settlement of pending cases under Central Excise and Service Tax has resulted in "great success, giving a big relief to medium and small enterprises".

"A similar scheme may be considered for settlement of customs duty matters including the settlement of non-fulfillment of obligations against EPCG and advance authorisation licence granting waiver of interest and penalty. This will be of great relief to the MSME Exporters," it said in a statement.

The Union Budget 2019-20 introduced the one-time amnesty scheme for central taxes. But it was available only for settling GST related disputes.

Further, EEPC India sought a tax dispensation for the MSME non-corporate exporters, similar to the corporates which have been rightly given major reduction in the corporate tax at 22 per cent and surcharge of 10 per cent.

"The non-corporate MSMEs are still taxed at 30 per cent and a surcharge of 12 per cent," it said.

"Most of the MSMEs are growing with internal accruals as they don't get much of the assistance from banks and financial institutions, as they cannot provide the collateral security to their satisfaction."

Besides, the exporters' body urged the government to extend the benefit of 15 per cent tax rate to the existing MSME manufacturing units apart from the companies which are registered on or after October 1, 2019.