EXPORTS

SECTION 154

Since Finance Act 1992, an exporter is being subjected to a final tax generally at the rate of 01% deducted on the proceeds of foreign exchange realization on account of export of goods and the tax deducted by an Authorized Dealer or bank constitute full and final discharge of tax liability of an exporter.

Export indenting commission

Clause (5)

Export indenting commission received by an export indenting agent or export buying house is subject to tax at the rate of 1% i.e. the same rate which the exporter is liable to tax. The said clause is now deleted with the result that such person would now be subject to tax at the rate of 5%

The exporters are also not required to file Income tax return.

A new sub section is also inserted as under:

"(3C) the Collector of Customs at the time of clearing of goods exported shall collect tax from the gross value of such goods at the rate specified in Division IV of Part III of the First Schedule".