Excise Duty reduced on Textile Intermediates – to solve the problem of un utilized credit
In this year’s budget, excise duty on man made fibres and filament yarns was reduced from 16% to 8%. Representations were received from trade and industry stating that this change has resulted in accumulation of unutilized credit with the manufacturers of fibres and filaments.
To address the problems associated with credit accumulation, the Government has made the following changes in excise duty rates on specified textile intermediates:
S.No. | Item | Rate | |
|---|---|---|---|
From | To | ||
1. | Paraxylene | 16% | 8% |
2. | Dimethyl terephthalate (DMT) | 16% | 8% |
3. | Pure terephthalic acid (PTA) | 16% | 8% |
4. | Polyester chips | 16% | 8% |
5. | Mono ethylene glycol (MEG) | 16% | 12% |
6. | Acrylonitrile | 16% | 8% |
NOTIFICATION NO. , Dated : July 20, 2006