India:Taxes on Shipbuilding Industry

The Union Minister of Shipping, Shri G.K. Vasan has informed the Rajya Sabha today in a written reply to a question that the Indian shipbuilding industry is adversely affected by multiple taxes and duties levied on it.

 

The details of taxes and duties imposed on shipbuilding industry are given below:

(i) Excise duty @ 5% plus 3% cess totaling 5.15% on domestic sale of ships.
(ii) Value Added Tax (State VAT) on indigenous sale of ships as applicable in the States.
(iii) Customs duty @ 10% (Basic Duty) plus Additional Duty, Counter veiling Duty and Cess totaling 26.85% is applicable on the capital items imported for shipbuilding works.

The Minister further informed that the Government had extended Ship building subsidy scheme to all Indian Shipyards with effect from 25th October 2002 upto the period 14th August 2007, whereafter it expired. However, subsidy is being provided to all eligible shipbuilding contracts concluded upto 14th August 2007. The Ministry of Shipping has taken up with the Department concerned the need for grant of various direct/indirect tax incentives for the growth of shipbuilding sector.

Reference

pib.nic

Image Credits

sportrider


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