In a bid to address challenges faced by importers and exporters in Gujarat, the Export-Import (EXIM) Club will take up awareness drive about government policies on taxation and foreign trade.
An association of exporters and importers in Gujarat, the club looks to educate stakeholders about government policies on taxation and exemptions schemes for foreign trade.
"With latest amendments in the Cenvat credit scheme in the Union Budget 2011-12, there was a need to spread more information to help small exporters to understand it better. This will be done through consultation and discussion forums. We are also planning a special presentation on service tax refund for small and medium enterprises (SMEs) in next month," said Jyotindra Kothari, president, Exim Club - Ahmedabad chapter.
Industry sources informed that there was a need to assess the implications after the amendments in the Cenvat scheme. A large number of small manufacturer-cum-exporters fall under the purview of Cenvat, hence a better understanding of the credit scheme would help SME units to take advantage of the government schemes.
In the Union Budget presented in February, the finance minister had attempted to liberalise the definition for inputs. But industry players termed it confusing and complex for the exporters to avail the benefits under the refund schemes.
The Exim club, with around 380 members in Gujarat, has also organised a discussion on the current rules and regulations of Cenvat credit so as to avoid the possible litigations.
"The discussions would help our members to avoid future litigations and get the comprehensive knowledge on new Cenvat rules," informed Kothari adding that exporters from Ahmedabad alone took the advantage of tax refunds worth nearly Rs 50-60 crore every year.
Meanwhile, giving an overview about the growth of industry, he further mentioned that the industry had a steady growth with export-import policy and economic fundamentals giving required support to the overseas trade. "Imports growth is more than exports. Ahmedabad companies import some of the key raw materials including polymers, chemicals, engineering equipment and machinery.
The overall cargo growth, both bulk and dry would be around 20 per cent over previous year. And the same can be expected for 2011-12," added Kothari.
