JOIN USIn a fresh push to ‘Make in India’, the government Thursday gave indirect tax break to ship building industry.
The Centre exempted all raw material parts used in the manufacture of ships, vessels, tugs and pusher crafts from customs and central excise duties.
This is expected to help domestic manufacturers who were under stress and demanded duty relaxation.
The step which comes ahead of Budget is expected to foster growth in export oriented units. At present, certain specified ships and vessels are exempt from basic customs duty and central excise duty. Consequently, ships and vessels manufactured in Export Oriented Units (EOUs) and cleared to domestic tariff area (DTA), the EOUs are not eligible for exemption on raw materials or parts of such ships or vessels.
Suitable amendment is being made to the relevant notifications so as to provide that EOUs will be eligible for duty exemption on raw materials and parts consumed in manufacture of such ships, which are cleared to DTA, even if such ships are exempt from basic customs duty and Central Excise and countervailing duties, an official notification said.