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Budget 2012: Some Positive Opportunities for Shipping Sector, Says Essar

By A. R. Ramakrishnan, MD, Essar Shipping

  • By AR Ramakrishnan, MD, Essar Shipping The customs duty on ships (CVD) which was introduced in the Budget last year has now been notified to be withdrawn with retrospective effect. This was however implemented soon after the last year's budget itself.

  • There are positive opportunities that could arise for the Indian shipping industry from the various initiatives announced for the power, steel and ports sectors. These initiatives will help the specific sectors in their ongoing projects and growth plans. These sectors being substantial users of Indian shipping services, the support provided to them over the next two/three year period would have a positive impact for shipping companies.

  • The amendments in service tax, including Negative List and Exempted List, together with the finalisation of Place of Supply Rules, will need to be studied in detail for any positive impacts on availment of Cenvat for the Shipping industry.

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