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Centre urged to extend IT benefits under TUFS

Staff Reporter

50 per cent depreciation for machineries installed

ERODE: In a memorandum the National President of the Textile Association (India), M.S. Mathivanan urged the Union Government to extend income tax benefits under the TUF Scheme. In a statement he said that 50 per cent depreciation benefit had been given to the machineries purchased and installed under Technology Upgradation Fund Scheme (TUFS). This is applicable to the weaving, garment and processing sector of textile industry, which had been purchased after 2001 and put into use before April 1, 2004. He said under the scheme extended up to 2007, the depreciation benefit could also be extended.

Under the modalities of scheme, interest benefit was given for the purchase of windmill, which was installed for the power generation for the scheme project. He said now it had been removed and no interest subsidy was given for it. Windmills also could be included as the power generated by windmill was less expensive and would be beneficial to the investors. Mr. Mathivanan urged the Union Government to consider the disbursement of 20 per cent capital subsidy benefit before installation to the financial institutions that approve the projects for financial assistance. He also said that benchmarking scheme should be introduced only for the weaving machines and not for any other sector.

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