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The Dollar Business Bureau The DGFT has issued a notification 21/2015-2020 dated August 14, 2017, amending para 4.32 (i) of FTP 2015-20: “Gold jewellery, including partly processed jewellery and articles including medallions and coins (excluding legal tender coins), whether plain or studded, containing gold of 8 carats and above up to a maximum limit of 22 carats.” The notification also declares that, “export of gold jewellery, including partly processed jewellery, whether plain or studded, and articles, containing gold of 8 carats and above upto a maximum limit of 22 carats ONLY shall be permitted from domestic tariff area and EOU/EHTP/STP/BTP Units.” In other words, gold jewellery, gold medallions and other precious items made of gold, above 22 carat purity are not permitted by any exporter ...

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 ...

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 ...

Ranjeet Mahtani and Stella Joseph One of the noteworthy proposals made in the Union Budget of 2017 is the proposal to rationalize Section 10AA of the Income-tax Act, 1961 (“IT Act”), which contains special provisions in respect of newly established Units in Special Economic Zones (“SEZ”). The IT Act provides for the levy, collection and recovery of income tax in India. It is divided into various chapters governing separate aspects including exemptions, computation of total income, deductions, etc. Section 10AA of the IT Act is a provision contained in Chapter III of the IT Act which was inserted w.e.f. 10.02.2006 allowing for deduction of profits and gains derived from the export earned by an SEZ Unit. The Section specifically uses the word “deduction”. ...

The Dollar Business Bureau The Directorate General of Foreign Trade (DGFT) has amended the 4.94(a) (i) & (ii) of the Hand Book of Procedures of Foreign Trade Policy (FTP) 2015-20 after which the export performance of gems and jewellery items from SEZ/EOU units shall not be clubbed with export performance from DTA units of any IEC holder for grant of Nominated Agency Certificate, it said in a public notice (No. 37/2015-2020) issued on Tuesday. The amended Para 4.94(a) (i) will now read as, “Four Star Export House (status on the basis of exports made only of Gems & Jewellery Sector items excluding export performance from SEZ/EOU units, if any) and Five Star Export House (excluding export performance of Gems and ...

The Dollar Business Bureau The government has done away with mandatory warehousing requirements for export-oriented units (EoUs) and software and electronic hardware technology parks to encourage exports and manufacturing from EoUs, electronic hardware technology parks (EHTPs) and software technology parks of India (STPIs). In addition, the Directorate General of Foreign Trade (DGFT) has also eased existing conditions for the EHTP and STP units. They can now avail tax exemptions in cases of conversion or merger of EoU units and vice versa. An EoU which is into agriculture, aquaculture, horticulture and poultry may be permitted to remove specified goods in connection with its activities for use “outside the premises of the unit”, DGFT said in a notification. The EoU scheme was first introduced in December 1980. The scheme had allowed manufacturing ...