Not happy with the reduced rate of depreciation from 25 per cent to 15 per cent in 2005-06 by the Government of India, The Apparel Export Promotion Council has sought increase in the rate of depreciation on plant and machinery. As per the council, the severe competition in the export trade makes it essential that the plant is modernized every four years and thus the depreciation rate should be reversed to the previous level of 25 per cent, to be beneficial for the entire industry.
Other demands from AEPC includes waiver of TDS (tax deducted at source) on foreign agency commission since they are provided outside India, an increase in the investment limit in plant and machinery of SME units from Rs 10-25 crore in order to make knitwear export units competitive in the global market, removal of 10% excise duty on branded readymade garments, removal of 5% basic customs duty on manmade fibre imports, allowance for duty free import of machinery to manufacture and process synthetic garments and fibres to boost investment in synthetic garments and a zero excise duty for man-made fibres in order to increase the usage of the same.
