Budget 2012: Little cheer for textile industry


This Budget offers little to lift the low spirits of textile industry. The 10% excise duty levied on branded garments has been taken under the overall excise duty ambit, which has been raised to 12% from 10%.

In terms of impact, there would be marginal benefit to textile companies in the higher end of the value chain.

Earlier, excise duty was levied on 45% value of a garment and the remaining 55% was considered non-manufacturing expenses and, hence, exempted from duty. For instance, a garment with a maximum retail price (MRP) of Rs100 would have earlier attracted an excise duty of Rs 4.5. But now, a garment would attract excise duty on 30% of its MRP and the rest 70% would be treated as non-manufacturing cost.

This would translate into an excise duty of Rs 3.60 on an MRP of Rs100. Companies such as Mandhana Industries, Arvind Ltd and Alok Industries would benefit marginally.

The Budget also proposed customs duty exemption of shuttleless looms from 5% to zero, which would benefit spinning mill companies such as Nahar Spinning Mills, Vardhman Textiles, Sangam India and Suryajyoti Mills.

Advertisements

2 thoughts on “Budget 2012: Little cheer for textile industry

  1. When Barna first went exploring churches, he was a student at Rutgers University in New Jersey and was about to be married. He and his fiancee, both Catholics at the time, visited different types of churches and found an evangelical congregation that focused on the Bible — and that was the church they joined.
    ##KEYWORD##

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s