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  Budget Proposal for the year 2014-2015

             DMAI/119/2013-2014                                    11th December 2013


Shri P. Chidambaram  

Hon.Union Minister of Finance,

Ministry of Finance,

North Block,

New Delhi-110 001.


Respected Sir,     


         Re :  BUDGET PROPOSAL FOR THE YEAR 2014-2015


We submit herewith our Proposal for the Union Budget –2014-2015






1)   General


    Presently, there is an inverse duty structure.  To give boost to exports and earn more foreign exchange, the duty structure should be as under:-


-   Zero Percent duty on all types of fuels

-  Low duty rate of 2% on basic Building Blocks like Benzene, Toluene, Xylene,      Naphthalene etc.

-   Moderate duty rate on Intermediates of 5%

-   High Duty rate on finished products of 7.5%


This will encourage our industry to export value added finished products and import only basic products of low value.


     2)  Specific


         Import Duty on Dyestuffs, Pigments & Optical Brighteners

         In order to save local dyestuffs manufacturing units, import duties on dyestuffs should be at least retained at the present levels to enable them to compete with the imported products, as the following parameters add to cost.


 -  High utilities like power, fuel, water etc.

 - Octroi in some states (Though it is a state subject, Finance Ministry could prevail upon states and direct them to abolish Octroi).

 -  High rate of interest on finance as compared to other countries of the world.

 -  GST to be implemented immediately.

 -  No anti-dumping duty - Protection on raw materials used by dyestuff industry, as we have to compete with China.





Refund of Excise to Exporters

i) We also request that clear cut guidelines be laid down to complete the procedures and formalities regarding refund of excise duty to exporters within a strict time frame including provision for payment of interest on late refunds.  Any discrepancy in refund application should be verified before accepting and returned with discrepancy note, if any. This will help not only our exporters under SSI units, but also other manufacturers-exporters as well.


ii) Exemption scheme, which has provided concessional rate of 60% of the normal rate of Central Excise Duty (CED) with Cenvat credit upto clearances of Rs. 1 Crore (Notification No. 9/2003-CE), has been withdrawn. This scheme had encouraged Small Scale Units to go in for Cenvat Credit from the very first clearance and hence needs to be reinstated, which will be consistent with the Government’s avowed objective of encouraging the sector.  The slab of the first clearance value of Rs.150/- lacs may be increased to Rs.300/- lacs.  Also, for eligibility criteria, aggregate of value of Rs.4 crores in the previous financial year should be increased to Rs.5 crores.


iii) Presently, Cenvat credit of Excise Duty on chemicals used in Effluent Treatment Plant (ETP) is allowed in certain areas, whereas it is denied in some other centres without any uniformity in practice.  We suggest a uniform procedure be followed at all centres without any difference/deviation.


iv) The exemption limit for clearance of goods for home consumption for SEM is Rs. 1.5 crores since April 2007.  Due to inflation over the last 6 years, this exemption limit should be increased to Rs.3 crores.                                                                                              



a) Corporate Income Tax to be reduced to max. 30% and there should be no other surcharge and cess.  Income Tax for individuals and others to be reduced to 25% max. It is an established fact that reduction in tax invariably increases revenue collection.


b)  Presently, audit is compulsory if the turnover exceeds Rs.1.00 crore.  This should be increased to at least Rs.5.00 crores commensurate with depreciation of rupee value.  Further, Income Tax for partnership firms from the present level of 30% for small firms having annual income of less than Rs.5.00 lacs should be reduced as under.



Income(Rs.)  Rateof Tax                                                    


Upto 1.0 lac                                     0%

1 to 2.5 lacs                                      10%

2.5 to 5 lacs                                      20%

over 5 lacs                                        30%




Further, TDS on interest should be increased to Rs.20,000/- from the present Rs.10,000/- for Bank deposits and others to Rs.10,000/- from Rs.5,000/-


c) The exemption limit under section 80C should be increased from Rs.1 lakh to Rs.2 lakh.


d) The limit of cash payment should be raised from Rs.20,000 to Rs.50,000 under section 40 A (3) of IT Act.




      The exemption limit for Wealth Tax is Rs.30.00 lacs for the last many years.  With depreciation in value of the rupee, the limit should be increased to Rs.75 lacs and the tax rate should be reduced from 1% to 0.5%,


Sir, we sincerely request you to consider our above proposals favourably.


Thanking you,


Yours faithfully,

For The Dyestuffs Manufacturers’ Association of India






CC to : 1) Shri Indrajit Pal


                 Ministry of Chemicals & Fertilizers 

                 Dept. of Chemicals & Petrochemicals,

                 Shastri Bhavan,

                 New Delhi-110 001.

            2)  The Secretary,

                 Dept. of Revenue,

                 Ministry of Finance,

                 North Block,

                 New Delhi-110 001.

                              3) The Member Secretary (Budget)

                 Central Board of Direct Taxes

                 Ministry of Finance (Dept. of Revenue)

                 North Block,

                 New Delhi-110 001.

            4) The Member Secretary (Budget)

                Central Board of Excise & Customs

                 Ministry of Finance (Dept. of Revenue)

                 North Block,

                 New Delhi-110 001.

    5) The Jt. Secretary,

         Tax Research Unit,

         Dept of Revenue,

         Ministry of Finance

        North Block,

        New Delhi-110 001.

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