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Big zero for small fry

The exim policy lowers the barrier to qualify for the zero import duty scheme, arming tiny software startups for the big bad world.

Commerce Minister Ramakrishna Hegde announced some measures that make software operators, particularly the small ones, feel good.

The encouraging announcement reduced the threshold on software duty till recently restricted to those making Rs 20 million in exports or be located

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in one of the 10 software parks or in one of the export processing zones under the Export Promotion of Capital Goods scheme. The new lower limit is Rs 100,000. And now all software exporters can avail of the benefits.

Software import licence entitlements have also being raised from 15 per cent of the net foreign exchange earnings to 25 per cent, especially since the premium on SIL has dropped five per cent recently.

SIL has been allowed to ISO-900 quality certification holders, even for export on on-site consultancy services

EPCG licence holders have benefited in other ways too. Till recently they had to compulsorily meet the export obligations by exporting material made of imported capital goods. Now they can export further value-added goods also with an enhanced export obligation.

The maximum value of depreciation of capital goods has also been raised from 70 per cent to 90 per cent over five years.

-Compiled from the Indian media

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