 "Tax incentives for shipbuilding sector")
The finance ministry has decided to provide a slew of tax incentives, including exemption from excise and custom duties, on all raw materials and parts used for making ships, to provide a boost to the domestic shipbuilding sector.
"(The government has decided to provide) exemption from customs and central excise duties on all raw material and parts for use in the manufacture of ships, vessels, tugs, and pusher crafts," an official statement said.
Besides, raw materials used for manufacturing ships and vessels in Export Oriented Units (EOUs) will be exempt from basic customs duty and excise duty.
"Suitable change is being made to provide that EOUs become eligible for duty exemption on raw materials or parts consumed in manufacture of such ships or vessels which are cleared to DTA (domestic tariff area), even if such ships or vessels are exempt from basic customs duty and central excise," it said.
These notifications were issued on November 24.
Currently, exemption from excise duty only on steel procured domestically for manufacturing in a customs bonded warehouse is available.
Besides, exemption from basic customs duty and additional duty of customs is available on all raw materials and parts subject to the condition that manufacturing takes place in a customs bounded warehouse.
