Export incentive Schemes under the FTP Are exports still incentivising under the GST regime?
By Ranjeet Mahtani and Suhasini Joshi The Government of India has always endeavoured to encourage and incentivise exports, and it has been an avowed policy to export goods and services and not taxes and duties. The Ministry of Commerce, Government of India has consistently formulated schemes aimed at diversifying Indian exports and creating a stable policy environment- Foreign Trade Policies (FTP). The FTP 2015-20 announced various schemes (some new and others modified existing schemes) as a step towards the Prime Minister’s much touted ‘Make in India’. On June 30th, 2017 the Directorate General of Foreign Trade (DGFT) issued a Trade Notice amending the scope, applicability and procedural aspects of some of the FTP schemes, in view of and to align with the new GST ...
Central Excise duties to be taken over by the Principal Commissioner of Customs
The Dollar Business Bureau With the implementation of GST, the Customs Board has decided to reorganise the Customs functions which were previously handled by the Central Excise department. In this context it has been decided that in respect to supplies made by Domestic Tariff Area or Domestic Tariff Zone (DTA) unit to Special Economic Zone (SEZ) units or developers and where the SEZ unit or developer issues a disclaimer to the DTA supplier and drawback is claimed by the DTA supplier, the drawback going forward shall be processed and paid by the Principal Commissioner of Customs or Commissioner of Customs/Customs (Preventive) under whose jurisdiction the DTA occurs. Earlier the same was disbursed by the Central Excise Commissionerate under whose jurisdiction the manufacturing unit ...
CBEC amends circular to aid manufacturers in getting Certificate from Development Commissioner
The Dollar Business Bureau The Central Board of Excise & Customs circular, dated April 10th 2017, has issued a notification with respect to difficulties faced by manufacturers (EOUs/EHTP/STP units) when availing a certificate from the jurisdictional Development Commissioner regarding duty if the manufacturers have procured goods from indigenous sources. The Customs notified that in an earlier notification given via Circular No.74/2001-Cus dated 04.12.2001, it was clarified that in case raw materials/ capital goods etc., procured from indigenous sources by EOUs/EPZ/SEZ/EHTP/STP units are transferred/ sold back to DTA except for the purpose of replacement, the deemed export benefits already availed of against such goods shall be required to be refunded back and that the export benefits shall be deposited through TR in ...
Goods and Services Tax: Progress made, concerns and the way forward
By Ranjeet Mahtani and Sweta Rajan Draft GST laws The Union Cabinet chaired by the Prime Minister has approved the Integrated GST, Central GST, Union Territory GST and GST Compensation bills on March 20, 2017. These four bills will now have to be passed by the Parliament. It is expected that the bills will be introduced in the Parliament early next week as a ‘money bill’ (note that the Rajya Sabha does not have the power to amend or reject money bills and is required to return it to the Lok Sabha within 14 days). Should the July 1, 2017 target for the introduction of GST in India be met, the Parliament will have to pass these bills before the end of ...
Mauritius to resume talks with India on CECPA
The Dollar Business Bureau Mauritius is eyeing to revive talks for a comprehensive economic cooperation agreement with India, which is on the verge of sorting out long-pending concerns with regard to the bilateral tax treaty. The island nation in the Indian Ocean is a primary source of foreign direct investments (FDI) coming to India and is looking to a preferential trade agreement. “Mauritius would resume negotiations with India on CECPA (Comprehensive Economic Cooperation and Partnership Agreement), said Pravind Jugnauth, Mauritius’ Finance and Economic Development Minister. “Now that the issue of DTA (Double Taxation Agreement) with India has been resolved, the government will revive and finalise the negotiations with New Delhi on the CECPA including a Preferential Trade Agreement," Jugnauth said in his 2016-17 Budget speech recently. During the fiscal of ...
India, Switzerland improve cooperation on tax matters
Source: PTI With India stepping up efforts to bring back illicit funds stashed abroad, Switzerland has said both sides have improved their cooperation on tax matters following several high-level meetings. Over the past few months, both countries have been working closely on mutual administrative assistance, according to the Swiss governmentand in the recent months, Switzerland has disclosed names of more than a dozen Indians about whom information has been sought by the Indian government amid suspicion that their accounts in Swiss banks were being used for stashing illicit money. "Switzerland and India have been working closely together in the field of mutual administrative assistance over the past few months," a Swiss Federal Department of Finance spokesperson told PTI from Berne. ...
