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Income-Tax Exemption: In order to promote exports, tax incentives are granted under the Income-Tax Act. The major incentives are :
1) All export profits derived from export of goods or merchandise outside India, except mineral oil and minerals and ores and services are exempted from the income-tax. The benefit is also available to supporting manufacturers/processors, selling goods or merchandise to an Export/Trading House for export.
2) Tax relief is provided on export of computer software and for import of system.
3) A deduction of 50% of the profits from project exports is granted to an Indian company or resident tax payer.
4) Five years tax holiday is provided to the units in Free Trade Zones/Export Processing Zones and 100% Export Oriented Units.
The exporters or manufacturers are required to enclose with their tax return a report in the prescribed form duly signed by a Chartered Accountant.
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Export of Imported Goods: Goods imported may be exported in the same or substantially the same form, without a licence provided they are not under the Negative Lists. Export of su
Realisation of Export Proceeds: If an exporter does not realise the export proceeds within the time specified by the Reserve Bank of India, he shall be liable to action in accorda
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