Why they dont want put the export tax

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2011 Dear sir\sir,
May I know why the govt don want put the export tax. If I want sell my goods to some countries , but I not able to pay.Why?

CA Satish Badve

CA Satish Badve (Expert)
Follow

13 November 2011 Govt needs foreign exchange for which main source is export.The country exconomic worthness is calcualted on the basis of foreign exchange reserves a country have. This foreign exchange is needed for purchase of crude oil and other imports.

Maninder Jain

Maninder Jain (Expert)
Follow

14 November 2011 The basic tenet of any Tax law is that the taxes should be levied at the place where the goods are consumed.

Forget for the time being your question. Lets talk about the sales tax law. If sell any goods as Local sale (within that state only) the sales tax is levied at 12.5% but if you sell these goods as central sales, CST is levied at marginal rate (2%) but when again these goods are sold locally, Local sales tax is levied.

So basically that state levies the tax where the goods are consumed.

Now same principle you apply in export & import. The goods you are importing have not sufferred any duty or tax si import duty is levied.
The export will be subject to tax in the country where they will be consumed.

S.Siju Gemin

S.Siju Gemin (Expert)
Follow

16 November 2011
I agree with Satish. Our Government does not impose tax on export as it increases foreign exchange reserve, at the same time it would lead to industrial development increasing employment opportunities within the country.

Our industries will produce quality products and will be equally competitive with any products of other countries.

Best example: Garment industry and electronic industry

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now