Eger luxury hotels1 April 2001

Hoteles LeipzigDuring the presentation of the Indian Government budget for the currentfiscal year, the Indian finance minister introduced Excise Duty on allready made garments. The apparel industry which has never been subjected to sucha levy faces an uphill task and a financial burden due this. 

ERROR MSGThis levy is payable on the ex-factory merchandise. However, unlike the otherprevailing Excise Duty levied on various goods, is computed on the Retail Price.This forces the apparel companies to fix the Maximum Retail Price that will beapplicable across the nation as there can not be any variation between thatdeclared for payment of Excise duty and the price at the retail counters. 

To enable companies that employ many factories to produce the merchandise asmoother operation, the concept of Excise Bonded Warehouse has beenintroduced by the Ministry of Finance on lines similar to Customs BondedWarehouse. Thus levy will be payable at the point of dispatch from the BondedWarehouses rather than ex-factory.

The systemic changes and to some extent changes in outbound logistics theapparel companies have to gear up are vast. Vedha Automations, is helping itsclientelle in the apparel industry using its warehousing solutionby making necessary changes to automate the additional and revised processes.The Vedha team is confident that all the clientele will smoothly switch over tothe Bonded Warehouse mode of operation within the time given by the Ministry ofFinance.