February 28, 2011
Members of the Council.
Sub : Highlights of Union Budget 2011-12
As you are kindly aware, the Hon’ble Union Minister of Finance announced the Union Budget 2011-12 today. The following are the major measures announced for the leather sector in this budget.
- SCHEME OF MEGA LEATHER CLUSTERS: Setting-up of Seven Mega Leather clusters during the year 2011-12, by extending the Mega Cluster Scheme for development of leather products.
- To encourage use of green processes, full exemption from basic excise duty is being granted to enzyme based preparations for pre-tanning falling under tariff no. 32029030 (Central Excise Notification – tariff- No. 4/2011 dated 1st March 2011).
- Duty Free Import Scheme : The 3% Duty Free Import Scheme (DFIS) is implemented by Council for Leather Exports as per which certain notified inputs are allowed to be imported to the extent of 3% of FOB value of export realization in the previous year by manufacturer-exporters of leather garments and other leather products including footwear. In this DFIS scheme, certain new inputs have been added and also the description of certain existing inputs have been widened. Accordingly, the amendments have been made vide Customs Notification No. 21/2011(tariff) dated 1st March 2011.
The detailed note on the highlights of the Union Budget 2011-12 is enclosed herewith. Members may kindly note the same.
Ali Ahmed Khan
COUNCIL FOR LEATHER EXPORTS
service tax no. 17 of 2011
central excise no. 5 of 2011
central excise no. 4 of 2011
central excise no. 1 of 2011
Union Budget 2011-12 Highlights