Goods and Services Tax

FEMA – 273/2013-RB – Dated:- 25-4-2013 – RESERVE BANK OF INDIA (FOREIGN EXCHANGE DEPARTMENT) CENTRAL OFFICE MUMBAI Notification No. 273/2013-RB Dated : April 25, 2013 Foreign Exchange Management (Export of Goods & Services) (Amendment) Regulations, 2013 G.S.R.342(E) – In exercise of powers conferred by clause (a) of sub-section (1), sub-section (3) of Section 7 and sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in partial modification of its Notification No.FEMA.23/2000-RB dated May 3, 2000 and Notification No. FEMA.99/2003-RB dated August 27, 2003, Reserve Bank makes the following amendment in the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, as amended from

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“Write-off” of unrealized export bills – Export of Goods and Services – Simplification of procedure – FEMA – 88 – Dated:- 12-3-2013 – RBI/2012-13/435 A.P. (DIR Series) Circular No. 88 12th March 2013 To All Category – I Authorized Dealer Banks Madam / Sir, Write-off of unrealized export bills – Export of Goods and Services – Simplification of procedure Attention of Authorized Dealer Category – I (AD Category –I) banks is invited to A.P. (DIR. Series) Circular No. 12, 30, 61, 40, 33 and 03 dated September 09, 2000, April 04, 2001, December 14, 2002, December 05, 2003, February 28, 2007 and July 22, 2010 respectively in terms of which the exporters were given limited powers of write-off and also AD Category – I banks have been permitted to accede to the requests for write-off made by the exporters, subject to the conditions, inter alia, that the exporter had to surrender proportionate export incentives, if availed of, in respect of the relative shipments. 2.

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n one year; (b) Satisfactory documentary evidence is furnished in support of the exporter having made all efforts to realize the dues; (c) The case falls under any of the undernoted categories : (i)The overseas buyer has been declared insolvent and a certificate from the official liquidator indicating that there is no possibility of recovery of export proceeds has been produced. (ii) The overseas buyer is not traceable over a reasonably long period of time. (iii)The goods exported have been auctioned or destroyed by the Port / Customs / Health authorities in the importing country. (iv)The unrealized amount represents the balance due in a case settled through the intervention of the Indian Embassy, Foreign Chamber of Commerce or similar Organization; (v)The unrealized amount represents the undrawn balance of an export bill (not exceeding 10% of the invoice value) remaining outstanding and turned out to be unrealizable despite all efforts made by the exporter; (vi) The cost of resorting

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a Chartered Accountant s certificate, indicating the export realization in the preceding calendar year and also the amount of write-off already availed of during the year, if any, the relevant GR / SDF Nos. to be written off, Bill No., invoice value, commodity exported, country of export. The CA certificate may also indicate that the export benefits, if any, availed of by the exporter have been surrendered. 5. However, the following would not qualify for the write off facility : a. Exports made to countries with externalization problem i.e. where the overseas buyer has deposited the value of export in local currency but the amount has not been allowed to be repatriated by the central banking authorities of the country. b. GR / SDF forms which are under investigation by agencies like, Enforcement Directorate, Directorate of Revenue Intelligence, Central Bureau of Investigation, etc. as also the outstanding bills which are subject matter of civil / criminal suit. 6. The respective AD ban

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Rs. 9,000 Crore set Apart for the 1st Instalment of the Balance of CST Compensation to States Work on Draft GST Constitutional Amendment Bill and GST Law Expected to be taken Forward – Dated:- 28-2-2013 – The Finance Minister Shri P. Chidambaram presenting the Union Budget in Lok Sabha today has expressed the hope that the consensus on providing for a Goods and Services Tax (GST) regime can be taken forward in the next few months so that a draft bill on the constitutional amendment and also a draft bill on GST can be tabled in the Lok Sabha. In his Budget 2013-14 speech, Shri. P. Chidambaram said that his recent meetings with the Empowered Committee of State Finance Ministers has led him to believe that the State Governments, or at least th

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Goods and Service Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 27-2-2013 Last Replied Date:- 30-12-1899 – On Goods and Service Tax (GST) front, there is now some news to cheer about. The Empowered Committee of State Finance Ministers which met for two days on 28-29 January, 2013 cleared the major hurdles in introduction of GST. However, we are not still sure as to whether it could come in 2014 or even later. Now the onus is on the Parliament to quickly clear the Constitutional Amendment Bill, 2011 which is now almost two years old. The Centre and the states last week crossed one major hurdle in the way of Goods & Services Tax (GST) by agreeing to a compensation formula for the Central Sales Tax (CST). A sub-committee of the Centre and states recommended 100 per cent compensation to states for a cut in CST from four per cent to two per cent for 2010-11, 75 per cent for 2011-12 and 50 per cent for 2012-13, respectively and as a result, Centre will now have pay ₹ 34,000 as CS

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required funds for various developmental works. Further, there should not be dual authority for the same tax. Also in some states, there are peculiar local taxes such as purchase tax, mandi tax, infrastructure development cess, coal cess, mining cess or royalty etc. There is a need to have a clarity and consensus on whether such taxes be subsumed in GST. Ideally yes. Economically, states have an issue as every tax is going to be subsumed in GST and states may loose on account of such taxes. How centre and states are going to address this is still not certain. GST would become a dream tax only if it is a simple and comprehensive tax leaving no room for any confusion or bottleneck leading to any inconsistency. GST : What Next – Time to wrap up loose ends – Not likely before 2014 LS elections – Constitutional Amendment Bill , 2011 – Report of Standing Committee in this Budget session, passage by winter session 2013 – GST rate – band may be introduced – Consensus

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re and states hold the key. Once consensus is reached, GST may see the light of the day in a year's time, even during any time of the year, it being a transaction based tax. While there is no doubt that GST must see the light of the day, the sooner the better, it should also address the problems in present day taxation i.e., it should seek to achieve rationalization, boost transparency, offer flexibility to Union and states and broaden the much needed tax base. If GST comes into operation, it would achieve the status of integrated and most comprehensive set off tax structure in India leading to enhanced economic activities and tax buoyancy. GST would offer a complete set off and there will be no tax cascading effect as there will be no tax on tax, an ideal proposition for all. Even the Government won't mind as tax revenues would go up substantially (VAT is a live case). It is felt that GST may seem to be a reality, if not in 2014, it may surely be in place after the next genera

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2013 (2) TMI 855 – ITAT NAGPUR – TMI ITA No.95 & 96/Nag/2012 Dated:- 6-2-2013 – Shri R. K. Gupta, JM And Shri Rajendra, AM For the Revenue : Mr. D.P.Tiwari For the Assessee : Mr. K.P.Dewani ORDER Per Shri R.K.Gupta, JM: These two appeals have been preferred by the department before the ITAT Nagpur Bench, Nagpur, against the order of leaned CIT(A)-II, Nagpur (Maharashtra) relating to the assessment year 2007-08 and 2008-09, respectively, which have been heard through E-Court, Mumbai. 2. The department is objecting in deleting the addition made by the AO on account of depreciation on higher rate at ₹ 9,42,621/- for the assessment year 2007-08 and at ₹ 78,11,531/- for assessment year 2008-09, respectively. 3. Since common issues are involved in both the cases, therefore, for the sake of convenience, both these cases have been heard and disposed of by this consolidated order together. 4. Brief facts of the case are that the assessee company is doing transportation business.

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nd water and is supplied into it to keep it wet. The surface of the pump gets deteriorated fast due to constant rotation of raw material on its surface. The life of the pump is not more than four to five years. The pump itself is of no use. A pump mounted on the truck can be moved from a plant to the place of requirement of RMC material. As the assessee has piled these for hire charges on other contract, depreciation, therefore, is claimed on higher side. However, the contention of the assessee was not accepted by the AO. Reliance was placed on a decision in the case of Popular Borewell Services, reported in 194 ITR 12(Mad), wherein it was held that, borewell rise and compressor is independent machinery installed on truck chassis and it is not used to carry goods . Accordingly, depreciation was allowed at the normal rate on the concrete mixer. 5. Assessee preferred before the learned CIT(A) for both of the years. Submissions made before the AO were reiterated before the learned CIT(A).

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i.e. rotary container is a body installed on chassis and, therefore, eligible for depreciation as provided on motor lorries. The contention of the assessee that in order to carry the goods like RMC specific body is required to be made so as to transport the goods like RMC from one destination to another. Accordingly, it was found that the body id a rotary container placed on chassis has no independent utility as a plant & machinery. The body is similar to freezed container for carrying ice cream or milk or heated container carrying bitumen etc. Accordingly, learned CIT(A) held that crane mounted on a truck is within expression Motor Lorries motor vehicle like fire trucks for lift trucks and crane trucks which are designated special service fall within the category of motor trucks. In support of its contention, reliance placed by the learned AR on the decision of the Shah Construction Co. Ltd. (supra) and Gujco Carriers (supra), was found acceptable. The decision of the Hon ble Mad

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nt year 2007-08, vide order dated 11-7-2012, wherein similar facts were involved. 7. We have heard rival submission and considered them carefully. We have also perused the order of AO and CIT(A). After considering all the material, we found no infirmity in the order of the learned CIT(A), who has decided the issue in favour of the assessee following the decision of the Hon ble Gujarat High Court in the case of Gujco Carriers (supra). Similar issue was involved in the case of M/s Jindal Earthmovers Pvt. Ltd. (supra), wherein the Tribunal has held that on the asset attached with the lorry, higher depreciation is allowable. While holding so, the decision of the Hon Gujarat High Court in the case of Gujco Carriers (supra) and the decision of Ansari Holding & Investment (P) Ltd. Vs. DCIT, 12 SOT 438, whereby it was held that mobile cranes registered as heavy motor vehicle are eligible for depreciation at the rate of 40%, allowed the issue in favour of the assessee. Similar facts are inv

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FEMA – AMENDMENT IN – FOREIGN EXCHANGE MANAGEMENT (EXPORT OF GOODS AND SERVICES) REGULATIONS, 2000 – Notification – TMI Updates – Highlights

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FEMA – Export of Goods and Services – Simplification and Revision of Softex Procedure at SEZs – Circular – TMI Updates – Highlights

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FEMA – 66 – Dated:- 1-1-2013 – RBI/2012-13/359 A.P. (DIR Series) Circular No. 66 January 1, 2013 To All Category – I Authorized Dealer Banks Madam / Sir, Export of Goods and Services – Simplification and Revision of Softex Procedure at SEZs Attention of the Authorised Dealer Banks is invited to Regulation 6 of the Notification No. FEMA 23/2000-RB dated May 3, 2000 viz. Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, as amended by the Notification No.FEMA.36/2001-RB dated February 27, 2001, in terms of which designated officials of the Ministry of Information Technology/ Ministry of Commerce and Industry(as the case may be), Government of India at the Software Technology Parks of India (STPIs) or at Free

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ually on all India basis, will be eligible to submit statements in revised excel format sheets as per enclosed Annexures A & B. All other terms and conditions mentioned in the A.P. (DIR Series) Circular No.80 dated February 15, 2012 applicable to exporters of software situated in STPIs would remain unchanged. 5. Authorised Dealers may bring the contents of this circular to the notice of their constituents concerned. 6. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law. Yours faithfully, (Rashmi Fauzdar) Chief General Manager – Circular – Trade

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Companies Law – Started By: – MANOHARAN ARUMUGAM – Dated:- 23-11-2012 Last Replied Date:- 23-11-2012 – Sir, We have misplaced original EC copy of SB. The payment tems is DAP. Can we negoiate the documnts with the bank with copy of EC copy of SB. If so, can you please inform the Master Circular, if any. Thanks. A.Manoharan – Reply By Pradeep Khatri – The Reply = You may get the reconstructed copy from the commissioner of customs after following the set procedure and on payment nominal fees in th

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TRADE NOTICE NO. 01/2018 Dated:- 18-11-2012 Trade Notice – Circulars – GST – OFFICE OF THE COMMISSIONER GST COMMISSIONERATE CHANDIGARH PLOT NO. 19, CENTRAL REVENUE BUILDING, SECTOR 17-C, CHANDIGARH- 160017 C. No. 03/systems/GST/E-office/2018 Dated: 18.12.2018 TRADE NOTICE NO. 01/2018 Subject:- Launch of E-office in GST Commissionerate, Chandigarh on 17 th December, 2018. This is for information of all taxpayers that e-office, an electronic application developed by the National Informatics Centre under the Ministry of Electronics and Information Technology (MeitY), Govt. Of India to carry out office work online

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3. Taxpayers are also encouraged to mention their mobile number and email in their communications to facilitate immediate acknowledgement by mail and SMS through the application. They will receive the Diary number allotted to their communications, which can be used as a reference by them while communicating with the Department in future. All members of the Regional Advisory Committee, Trade Associations and Chamber of Commerce in state of Punjab are requested to circulate this Trade Notice among their constituent members for wide dissemination. Difficulties faced or suggestions, if any may be brought to notice. (Kishori Lal) Commissioner – Circular – Trade Notice – Public Notice –

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FEMA – Export of Goods and Services –Simplification and Revision of Softex Procedure – Circular – TMI Updates – Highlights

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FEMA – 47 – Dated:- 23-10-2012 – RBI/2012-13/260 A.P. (DIR Series) Circular No. 47 October 23, 2012 To All Authorised Dealers in Foreign Exchange Madam/Sir, Export of Goods and Services –Simplification and Revision of Softex Procedure Attention of the Authorised Dealers is invited to Regulation 6 of the Notification No. FEMA 23/2000-RB dated May 3, 2000 viz. Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, as amended by the Notification No.FEMA.36/2001-RB dated February 27, 2001, in terms of which designated officials of the Ministry of Information Technology, Government of India at the Software Technology Parks of India (STPIs) or at Free Trade Zones (FTZs) or Export Processing Zones (EPZs) or Special Ec

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has been decided to implement the revised procedure in all the STPIs in India with immediate effect. 4. As per the revised procedure, a software exporter, whose annual turnover is at least Rs.1000 crore or who files at least 600 SOFTEX forms annually on all India basis, will be eligible to submit a statement in excel format as detailed in our A.P. (DIR Series) Circular No.80 dated February 15, 2012. 5. Authorised Dealers may bring the contents of this circular to the notice of their constituents concerned. 6. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any o

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FEMA – 46 – Dated:- 23-10-2012 – RBI/2012-13/259 A. P. (DIR Series) Circular No. 46 October 23, 2012 To All Category – I Authorised Dealer Banks Dear Madam/ Sir, Supply of Goods and Services by Special Economic Zones (SEZs) to Units in Domestic Tariff Areas (DTAs) against payment in foreign exchange Attention of the Authorised Dealer (AD) Category – I banks is invited to A.P. (Dir Series) Circular No.105 dated June 16, 2003, in terms of which units in the Domestic Tariff Areas (DTAs) have been permitted to purchase foreign exchange from ADs for making payment towards goods supplied to them by units in the Special Economic Zones (SEZs). 2. The matter has since been reviewed in consultation with the Ministry of Commerce and Industry, Governm

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FEMA – 241/2012-RB – Dated:- 25-9-2012 – RESERVE BANK OF INDIA (EXCHANGE CONTROL DEPARTMENT) CENTRAL OFFICE MUMBAI 400 001 Notification No. FEMA 241/2012-RB Dated 25-9-2012 GSR 896(E),-In exercise of the powers conferred by sub-section (2) of section 7 and sub-section (1) of section 47 of the Foreign Exchange Management Act, 1999 (42 1999) (Notification No. FEMA 23/RB-2000, dated 3rd May, 2000), the Reserve Bank India makes the following amendments in the Foreign Exchange Management (Export of

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Goods and Services Tax – Started By: – amit sharma – Dated:- 31-8-2012 Last Replied Date:- 2-9-2012 – sir i would like to know that upto which date government is thinking to implement goods and services tax……………… and what will gone be the major changes in goods and services tax pleasse inform me about it as soon as posssible i am waiting for your reply sir……………… – Reply By Pradeep Khatri – The Reply = GST may be implemented in the year 2014. GSTN will be lauched in Oct 2

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Dated:- 24-8-2012 – Press Information Bureau Government of India Ministry of Finance 24-August-2012 17:56 IST The Union Finance Minister, Shri P. Chidambaram said that the goods and services tax (GST) is a more effective and efficient substitute for plethora of indirect taxes. The Finance Minister said that he is hopeful that the GST Bill would be passed before the end of the current financial year. The Finance Minister was addressing the Third Meeting of the Consultative Committee attached to the Ministry of Finance, here today. The subject matter of the discussion was GST-the Way Forward . The Finance Minister Shri P. Chidambaram further said that though there are still some issues relating to GST and its Network (GSTN) to be resolved, y

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the tax payers, share infrastructure and services to Central/State Governments. The common and shared infrastructure for GST would also be leveraged for providing benefits to Centre/States, even prior to roll-out of GST. The Empowered Committee of State Finance Ministers (EC) and the Union Finance Minister endorsed the recommendations of EG on the IT strategy for GST, the structure and role of GSTN SPV, as also the selection of NSDL as technology partner for incubating SPV. The Members of the Consultative Committee participating in the discussion gave various suggestions relating to GST and its Network. They were of the view that GST is good for all stakeholders including Central and State Governments as well as traders and business communi

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ment mechanism and exclusion of certain products from the GST system among others were also raised during the discussion. Members of Parliament who attended the today s Consultative Committee Meeting include Shri S.P.Y. Reddy, Shri Suresh C. Angadi, Shri Narahari Mahato, Shri W. Bhaushaeb Rajaram and Smt. Rajkumari Ratna Singh (all from Lok Sabha), Shri N.K. Singh, Shri Rajeev Chandrasekhar, Shri Rajkumar Dhoot, Shri Birender Singh, Shri Shantaram Naik, Dr. Ashok Sekhar Ganguli and Ishwar Lal Jain (all from Rajya Sabha). Shri S.S. Palanimanickam, Minister of State for Revenue, Shri Namo Narain Meena, Minister of State for Financial Services and Expenditure, Shri R.S. Gujral, Finance Secretary, Shri Sumit Bose, Revenue Secretary, Shri Arvind

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FEMA – 13 /2012-13 – Dated:- 2-7-2012 – RBI/2012-13/13 Master Circular No.13 /2012-13 July 02, 2012 To, All Category – I Authorised Dealer Banks Madam / Sir, Master Circular on Import of Goods and Services Import of Goods and Services into India is being allowed in terms of Section 5 of the Foreign Exchange Management Act 1999 (42 of 1999), read with Notification No. G.S.R. 381(E) dated May 3, 2000 viz. Foreign Exchange Management (Current Account) Rules, 2000 as amended from time to time. 2. This Master Circular consolidates the existing instructions on the subject of Import of Goods and Services at one place. The list of underlying circulars consolidated in this Master Circular is also furnished. 3. This Master Circular is being issued with a sunset clause of one year. This circular will stand withdrawn on July 1, 2013 and be replaced by an updated Master Circular on the subject. Yours faithfully, (Rudra Narayan Kar) Chief General Manager INDEX Section A – Introduction Section

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ex-3 Annex- 4 Annex-5 Appendix List of Circulars consolidated in the Master Circular Section A – Introduction (i) Import trade is regulated by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce & Industry, Department of Commerce, Government of India. Authorised Dealer Category – I (AD Category – I) banks should ensure that the imports into India are in conformity with the Foreign Trade Policy in force and Foreign Exchange Management (Current Account Transactions) Rules, 2000 framed by the Government of India vide Notification No. G.S.R.381 (E) dated May 3, 2000 and the Directions issued by Reserve Bank under Foreign Exchange Management Act, 1999 from time to time. (ii) AD Category – I banks should follow normal banking procedures and adhere to the provisions of Uniform Customs and Practices for Documentary Credits (UCPDC), etc. while opening letters of credit for import into India on behalf of their constituents. (iii) Compliance with t

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made in Form A-1 (Annex-5) ii) It is clarified that the ADs need not obtain any document, including Form A-1, except a simple letter from the applicant containing the basic information viz., the name and the address of the applicant, name and address of the beneficiary, amount to be remitted and the purpose of remittance, as long as the exchange being purchased is for a current account transaction (and is not included in the Schedules I and II of the Foreign Exchange Management (Current Account Transactions) Rules, 2000 framed by Government of India vide Notification No. G.S.R.381 (E) dated May 3, 2000, as amended from time to time, the amount does not exceed USD 5000 or its equivalent and the payment is made by a cheque drawn on the applicant s bank account or by a Demand Draft. B.3. Import Licenses Except for goods included in the negative list which require licence under the Foreign Trade Policy in force, AD Category – I banks may freely open letters of credit and allow remittances

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e that the importer furnishes evidence of import viz., Exchange Control copy of the Bill of Entry, Postal Appraisal Form or Customs Assessment Certificate, etc., and satisfy himself that goods equivalent to the value of remittance have been imported. (iii) In addition to the permitted methods of payment for imports laid down in Notification No.FEMA14/2000-RB dated 3rd May 2000, payment for import can also be made by way of credit to non-resident account of the overseas exporter maintained with a bank in India. In such cases also AD Category – I banks should ensure compliance with the instructions contained in sub-paragraphs (i) and (ii) above. B.5. Time Limit for Settlement of Import Payments B.5.1. Time limit for normal imports (i) In terms of the extant regulations, remittances against imports should be completed not later than six months from the date of shipment, except in cases where amounts are withheld towards guarantee of performance, etc. (ii) AD Category – I banks

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xcept as otherwise provided in the Regulations, no person shall, without the general or special permission of the Reserve Bank, import or bring into India, any foreign currency. Import of foreign currency, including cheques, is governed by clause (g) of sub-section (3) of Section 6 of the Foreign Exchange Management Act, 1999, and the Foreign Exchange Management (Export and Import of Currency) Regulations 2000, made by Reserve Bank vide Notification No. FEMA 6/2000-RB dated May 3, 2000, as amended from time to time. (ii) Reserve Bank may allow a person to bring into India currency notes of Government of India and / or of Reserve Bank subject to such terms and conditions as the Reserve Bank may stipulate. B.6.1. Import of foreign exchange into India A person may – (i) send into India without limit foreign exchange in any form other than currency notes, bank notes and travellers cheques; (ii) bring into India from any place outside India, without limit foreign exchange (other than

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Reserve Bank notes up to an amount not exceeding Rs.7,500/- per person. (ii) A person may bring into India from Nepal or Bhutan, currency notes of Government of India and Reserve Bank notes other than notes of denominations of above Rs.100 in either case. Section C – Operational Guidelines for Imports C.1. Advance Remittance C.1.1. Advance Remittance for import of goods (i) AD Category – I bank may allow advance remittance for import of goods without any ceiling subject to the following conditions: (a) If the amount of advance remittance exceeds USD 200,000 or its equivalent, an unconditional, irrevocable standby Letter of Credit or a guarantee from an international bank of repute situated outside India or a guarantee of an AD Category – I bank in India, if such a guarantee is issued against the counter-guarantee of an international bank of repute situated outside India, is obtained. (b) In cases where the importer (other than a Public Sector Company or a Department/Underta

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specified conditions. C.1.2. Advance Remittance for Import of Rough Diamonds (i) AD Category – I bank are permitted to allow advance remittance without any limit and without bank guarantee or standby Letter of Credit, by an importer (other than a Public Sector Company or a Department / Undertaking of the Government of India / State Government/s), for import of rough diamonds into India from the under noted mining companies, viz. a) De Beers UK Ltd, b) RIO TINTO, UK, c) BHP Billiton, Australia, d) ENDIAMA, E. P. Angola, e) ALROSA, Russia, f) GOKHARAN, Russia, g) Rio Tinto, Belgium, h) BHP Billiton, Belgium and i) Namibia Diamond Trading Company (PTY) Ltd. (NDTC). (ii) While allowing the advance remittance, AD bank may ensure the following: (a) The importer should be a recognized processor of rough diamonds as per the list to be approved by Gems and Jewellery Export Promotion Council (GJEPC) in this regard and should have a good track record of export realisation; (b) AD Category &

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te Government/s, AD Category – I bank may permit advance remittance subject to the above conditions and a specific waiver of bank guarantee from the Ministry of Finance, Government of India where the advance payments is equivalent to or exceeds USD 100,000. (iv) AD Category – I banks are required to submit a report in the format annexed (Annex-2) of all such advance remittances made without a bank guarantee or Standby Letter of Credit, where the amount of advance payment is equivalent to or exceeds USD 5,000,000, to the Chief General Manager, Reserve Bank of India, Foreign Exchange Department, Trade Division, Central Office, Amar Building, Sir. P. M. Road, Fort, Mumbai – 400 001, on a half yearly basis as at the end of September and March every year. The report should be submitted within 15 days from the close of the respective half year. C.1.3. Advance Remittance for Import of Aircrafts/Helicopters and other Aviation Related purchases As a sector specific measure, ai

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ount of the manufacturer (supplier) concerned. iii. AD Category – I bank may frame their own internal guidelines to deal with such cases, with the approval of their Board of Directors. iv. In the case of a Public Sector Company or a Department / Undertaking of Central /State Governments, the AD Category – I bank shall ensure that the requirement of bank guaranteehas been specifically waived by the Ministry of Finance, Government of India for advance remittances exceeding USD 100,000. v. Physical import of goods into India is made within six months (three years in case of capital goods) from the date of remittance and the importer gives an undertaking to furnish documentary evidence of import within fifteen days from the close of the relevant period. It is clarified that where advance is paid as milestone payments, the date of last remittance made in terms of the contract will be reckoned for the purpose of submission of documentary evidence of import. vi. Prior to making the remittance

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ee of a bank of international repute situated outside India, should be obtained from the overseas beneficiary. (b) In the case of a Public Sector Company or a Department/ Undertaking of the Government of India/ State Governments, approval from the Ministry of Finance, Government of India for advance remittance for import of services without bank guarantee for an amount exceeding USD 100,000 (USD One hundred thousand) or its equivalent would be required. (c) AD Category – I banks should also follow-up to ensure that the beneficiary of the advance remittance fulfils his obligation under the contract or agreement with the remitter in India, failing which, the amount should be repatriated to India. C.2. Interest on Import Bills (i) AD – Category – I bank may allow payment of interest on usance bills or overdue interest for a period of less than three years from the date of shipment at the rate prescribed for trade credit from time to time. (ii) In case of pre-payment of u

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the insurance claim relating to the lost goods has been settled in favour of the importer. It may be ensured that the consignment being replaced is shipped within the validity period of the license. C.4. Guarantee for Replacement Import In case replacement goods for defective import are being sent by the overseas supplier before the defective goods imported earlier are reshipped out of India, AD Category-I banks may issue guarantees at the request of importer client for dispatch/return of the defective goods, according to their commercial judgment. C.5. Import of Equipment by Business Process Outsourcing (BPO) Companies for their overseas sites AD Category – I bank may allow BPO companies in India to make remittances towards the cost of equipment to be imported and installed at their overseas sites in connection with the setting up of their International Call Centres (ICCs) subject to the following conditions: (i) The BPO company should have obtained necessary approval from the M

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ectly by the importers from the overseas supplier, except in the following cases: (i) Where the value of import bill does not exceed USD 300,000. (ii) Import bills received by wholly-owned Indian subsidiaries of foreign companies from their principals. (iii) Import bills received by Status Holder Exporters as defined in the Foreign Trade Policy, 100% Export Oriented Units / Units in Special Economic Zones, Public Sector Undertakings and Limited Companies. (iv) Import bills received by all limited companies viz. public limited, deemed public limited and private limited companies. C.6.2. Receipt of import documents by the importer directly from overseas suppliers in case of specified sectors As a sector specific measure, AD Category – I banks are permitted to allow remittance for imports up to USD 300,000 where the importer of rough diamonds, rough precious and semi-precious stones has received the import bills / documents directly from the overseas supplier and the documentary evidence

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bout the financial standing/status and track record of the importer customer. (ii) Before extending the facility, the AD Category – I bank should obtain a report on each individual overseas supplier from the overseas banker or a reputed overseas credit agency. However, such credit report on the overseas supplier need not be obtained in cases where the invoice value does not exceed USD 300,000 provided the AD Category – I bank is satisfied about the bonafides of the transaction and track record of the importer constituent. C.7. Evidence of Import C.7.1. Physical Imports (i) In case of all imports, where value of foreign exchange remitted/ paid for import into India exceeds USD 100,000 or its equivalent, it is obligatory on the part of the AD Category – I bank through whom the relative remittance was made, to ensure that the importer submits :- (a) The Exchange Control copy of the Bill of Entry for home consumption, or (b) The Exchange Control copy of the Bill of Entry

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nsumption, a certificate from the Chief Executive Officer (CEO) or auditor of the company that the goods for which remittance was made have actually been imported into India provided :- (a) the amount of foreign exchange remitted is less than USD 1,000,000 or its equivalent, (b) the importer is a company listed on a stock exchange in India and whose net worth is not less than Rs.100 crore as on the date of its last audited balance sheet, or, the importer is a public sector company or an undertaking of the Government of India or its departments. (ii) The above facility may also be extended to autonomous bodies, including scientific bodies/academic institutions, such as Indian Institute of Science / Indian Institute of Technology, etc. whose accounts are audited by the Comptroller and Auditor General of India (CAG). AD Category – I bank may insist on a declaration from the auditor/CEO of such institutions that their accounts are audited by CAG. C.7.3. Non Physical Imports (i) Where

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ills of Entry or Postal Appraisal Forms or Customs Assessment Certificates, etc. (ii) Documents evidencing import into India should be preserved by AD Category – I bank for a period of one year from the date of its verification. However, in respect of cases which are under investigation by investigating agencies, the documents may be destroyed only after obtaining clearance from the investigating agency concerned. C.10. Follow up for Import Evidence (i) In case an importer does not furnish any documentary evidence of import, as required under paragraph C.7. of Part III, within 3 months from the date of remittance involving foreign exchange exceeding USD 100,000, the AD Category – I bank should rigorously follow-up for the next 3 months, including issuing registered letters to the importer. (ii) AD Category – I bank should forward a statement on half-yearly basis as at the end of June & December of every year, in form BEF (Annex 1) furnishing details of import tran

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Platinum / Silver by Nominated Banks / Agencies C.12.1. Import on consignment basis Gold may be imported by the nominated agencies/banks on consignment basis where the ownership will remain with the supplier and the importer (consignee) will be acting as an agent of the supplier (consignor). Remittances towards the cost of import shall be made as and when sales take place and in terms of the provisions of agreement entered into between the overseas supplier and nominated agency/bank. These instructions would also apply to import of platinum and silver. C.12.2. Import on unfixed price basis The nominated agency/bank may import gold on outright purchase basis subject to the condition that although ownership of the gold shall be passed on to the importer at the time of import itself, the price of gold shall be fixed later, as and when the importer sells the gold to the users. These instructions would also apply to import of platinum and silver. C.13. Direct Import of Gold AD Category &nd

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rade transactions. (iv) In addition to carrying out the normal due diligence exercise, the credentials of the supplier should also be ascertained before opening the LCs. The financial standing, line of business and the net worth of the importer customer should be commensurate with the volume of business turnover. Apart from the above, in case of such transactions banks should also make discreet enquiries from other banks to assess the actual position. Further, in order to establish audit trail of import/export transactions, all documents pertaining to such transactions must be preserved for at least five years. (v) AD Category – I bank should follow up submission of the Bill of Entry by the importers as stipulated. vi) Head Offices/International Banking Divisions of AD Category -I banks shall henceforth submit the following statements to the Chief General Manager, Reserve Bank of India, Foreign Exchange Department, Central Office, Trade Division, Amar Building, Fort, Mumbai-40000

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Gem and Jewellery sector can import gold on loan basis for manufacturing and export of jewellery on their own account only. (iii) The maximum tenor of gold loan would be as per the Foreign Trade Policy 2009-2014, or as notified by the Government of India from time to time in this regard. (iv) AD bank may open Standby Letters of Credit (SBLC), for import of gold on loan basis, where ever required, as per FEDAI guidelines dated April 1, 2003. The tenor of the SBLC should be in line with the tenor of the gold loan. (v) SBLC can be opened only on behalf of entities permitted to import gold on loan basis, viz. nominated agencies and 100% EOUs/units in SEZ, which are in the Gem and Jewellery sector. (vi) SBLC should be in favour of internationally renowned bullion banks only. AD Category – I bank can obtain a detailed list of internationally renowned bullion banks from the Gem & Jewellery Export Promotion Council. (vii) All other existing instructions on import of gold and opening

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e diligence is undertaken and Know Your Customer (KYC) norms and Anti-Money Laundering (AML) guidelines, issued by the Reserve Bank are adhered to while undertaking import of the metals and rough, cut and polished diamonds. Further, any large or abnormal increase in the volume of business should be closely examined to ensure that the transactions are bonafide and are not intended for interest / currency arbitrage. All other instructions relating to import of these metals and rough, cut and polished diamonds shall continue. C.16. Import factoring (i) AD Category – I bank may enter into arrangements with international factoring companies of repute, preferably members of Factors Chain International, without the approval of Reserve Bank. (ii) They will have to ensure compliance with the extant foreign exchange directions relating to imports, Foreign Trade Policy in force and any other guidelines/directives issued by Reserve Bank in this regard. C.17. Merchanting Trade AD Category &nd

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ash; I banks may note that short-term credit either by way of suppliers credit or buyers credit is not available for merchanting trade or intermediary trade transactions. Appendix List of Circulars consolidated in the Master Circular Import of Goods and Services AP (DIR Series) Circular No. 106 dated June 19, 2003 AP (DIR Series) Circular No. 4 dated July 19, 2003 AP (DIR Series) Circular No. 9 dated August 18, 2003 AP (DIR Series) Circular No. 15 dated September 17, 2003 AP (DIR Series) Circular No. 49 dated December 15, 2003 AP (DIR Series) Circular No. 66 dated February 6, 2004 AP (DIR Series) Circular No. 72 dated February 20, 2004 AP (DIR Series) Circular No. 2 dated July 9, 2004 AP (DIR Series) Circular No. 34 dated February 18, 2005 AP (DIR Series) Circular No. 1 dated July 12, 2005 AP (DIR Series) Circular No. 33 dated February 28, 2007 AP (DIR Series) Circular No. 34 dated March 2, 2007 AP (DIR Series) Circular No. 63 dated May 25, 2007 AP (DIR Series) Circular No. 77 dated Ju

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FEMA – 14/2012-13 – Dated:- 2-7-2012 – RBI/2012-13/14 Master Circular No. 14/2012-13 July 02, 2012 To, All Category – I Authorised Dealer Banks Madam / Sir, Master Circular on Export of Goods and Services Export of Goods and Services from India is allowed in terms of clause (a) of sub-section (1) and sub-section (3) of Section 7 of the Foreign Exchange Management Act 1999 (42 of 1999), read with Notification No. G.S.R. 381(E) dated May 3, 2000 viz. Foreign Exchange Management (Current Acc

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Customs – Started By: – deepak kalambate – Dated:- 30-6-2012 Last Replied Date:- 3-7-2012 – Dear Sir, Pl. let me know whether export made against EPCG license can be counted towards fulfilment of export obligation for Advance License simultaneously. – Reply By Pradeep Khatri – The Reply = Yes, it it allowed. To encourage value added manufacture export, a minimum 15% value addition on imported inputs under Advance Authorisation Scheme has been stipulated.Shipments under Advance Authorization, DFRC, DFIA,or Drawback scheme, or incentive schemes under Chapter 3 of FTP; would also count for fulfillment of EPCG export obligation. This is for your kind information. Regards, Pradeep Khatri – Reply By deepak kalambate – The Reply =

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Allied Laws – STEP CLOSER TO THE GOODS AND SERVICE TAX (GST) – TMI Updates – Highlights

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Dated:- 25-6-2012 – STEP CLOSER TO THE GOODS AND SERVICE TAX (GST) PRESS RELEASE, Dated 20-6-2012 1. In a function held today (20-6-2012) in North Block, Hon'ble Finance Minister released the Guidance Paper on the new approach to service tax. The public release of the Guidance Paper marks the culmination of the year long efforts made by the Government to introduce a negative list based comprehensive approach to taxation of services as a part of the Budget exercise. The new approach to taxation of services is intended to take the country and the economy a step closer towards the introduction of Goods and Service Tax (GST). 2. The release of the Guidance Paper on the new approach marks the end of the positive list based selective approach to taxation of services, which is in vogue since 1994. The Guidance Paper has become necessary to explain the changes which have been brought about as a result of the new approach. The Guidance Paper brings out in a lucid language, the magnitude an

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. 4. The Hon'ble Finance Minister further opined that the new approach is not a revenue augmentation measure but intended to make compliance simple and administration of service tax law easier. 5. While releasing the Guidance Paper Hon'ble Finance Minister also announced some new exemptions as follows: (a) Service provided by advocates to other advocates and business entities upto a turnover of ₹ 10 lakh in the preceding financial year. (b) Exemption to firm of advocates on the same lines as individual advocates. (c) Auxiliary educational services and renting of immovable property provided by educational institutions in respect of education exempt from service tax. (d) Exemption to services provided to Government and local authorities also extended to governmental authorities, government authority defined as any entity established by a special law with 90% or more control by Government and set up to carry out any of the functions entrusted to municipalities under Article

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conveniences such as provision of facilities of bathroom, washroom, lavatory urinals or toilets. With the new additions, the number of exemptions in the 'mega exemption' notification, popularly referred as 'exempt list' has gone up to 38. 6. The Hon'ble Finance Minister observed that the final version of the Place of Provision of Services Rules, 2012 is already issued, which has the potential to serve as a framework for discussion on the inter-state taxation of services under the GST. He complimented his team of officers in the Tax Research Unit, Chairman, CBEC and the Finance Secretary for putting forward their best efforts to make the new approach to taxation of services, a reality. Observing that revenue collections from service tax have grown to more than ₹ 97,000 crore which reflects both the impact of new policy initiatives and improved compliance. Hon'ble Finance Minister said that during the first two months of the current fiscal, service tax reven

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Allied Laws – FM releases Guidance Paper on service tax: new approach intended to take country and economy a step closer to GST – TMI Updates – Highlights

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Dated:- 20-6-2012 – Union Finance Minister, ShriPranabMukherjee released the Guidance Paper on the new approach to service tax, here today. The release of the Guidance Paper marks the culmination of the year long efforts made by the Government to introduce a negative list based comprehensive approach to taxation of services as a part of the Budget exercise. The new approach to taxation of services is intended to take the country and the economy a step closer towards the introduction of Goods and Service Tax (GST). Speaking on the occasion, Union Finance Minister ShriPranab Mukherjee said that the journey of service tax has been a step-by-step progress that began in 1994 and will complete 18 years at the end of this month. The revenue has also increased from nearly ₹ 400 crore in the first year to more than ₹ 97,000crore in the last financial year, an increase of nearly 37% over 2010-11,he said. The current year is also witnessing growth in excess of 40% in the first two mo

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fts to Government, services provided by sub-contractors to the main contractors who are exempt, services by public libraries and Employees State Insurance Corporation (ESIC), services by way of public conveniences and sale of going concerns. The Finance Minister said that we have also taken note of the concerns of many States that some of the autonomous bodies set up under a special law may not be able to enjoy the benefits that are available to Government or local authorities. Accordingly, services provided by Government authorities in relation to functions entrusted to municipalities and a number of other services provided to such authorities have also been brought within the purview of exemption, he said.The Finance Minister said that as a result of these exemptions and some other minor changes, the total number of exemptions has gone up from 34 to 38. Shri Mukherjee stated that we have already released the final version of Place of Provision Rules, 2012. He stated that as he had sa

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while we have set a target of ₹ 1,24,000 crore from service tax for the current year, he was hopeful that the new reform will act as a catalyst to help us exceed the target significantly. He once again commended the CBEC, its Chairman, the concerned Members and Team TRU, ably guided by the Finance Secretary in this bold experiment. The release of the Guidance Paper on the new approach marks the end of the positive list based selective approach to taxation of services, which is in vogue since 1994. The Guidance Paper has become necessary to explain the changes which have been brought about as a result of the new approach. The Guidance Paper brings out in a lucid language, the magnitude and depth of the changes arising on account of the introduction of the new approach. Comprehensive in coverage, the Guidance Paper attempts to anticipate and answer almost all the questions that may arise in the minds of an ordinary taxpayer in the wake of implementation of the new approach. – News

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2012 (8) TMI 582 – ITAT, MUMBAI – TMI – – Addition of income from house property – AO stated that Annual Value as offered by the assessee was understated – CIT (A) deleted the addition – Held that:- As decided in DCIT Versus Reclamation Realty India (P) Ltd. [2010 (11) TMI 477 – ITAT, MUMBAI] the rateable value under the Municipal law has to be adopted as annual value u/s. 23(a) & that the A.O. has grossly erred by calculating the annual let out value by estimating the market value of the property at ₹ 1,20,00,000/- ignoring the fact that the Municipal Rateable Value given by the Government Authority i.e Mumbai Municipal Corporation at ₹ 1,58,372/ against revenue.



Treating the monies advanced to assessee as deemed dividends – Held that:- Deemed dividend can be assessed only in the hands of a person who is a shareholder of the lender company and not in the hands of a person other than shareholder & the expression ‘shareholder’ referred to in section 2(22)(e) re

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entical and issues involved are common, all these appeals are disposed of by this common order for the sake of convenience. ITA No. 4330/Mum/2011 (A.Y. 2007-08) 2. Briefly stated facts of the case are that the assessee company is engaged in the business of realty developer. Search & seizure action u/s 132(1) of the Income Tax Act, 1961 (the Act) were undertaken at the premises of Oberoi Group of assesses on 19-7-2007. In response to notice u/s 153A, the return was filed declaring total income of Rs. 4,24,37,950/-. However, the assessment was completed at an income of Rs. 4,93,33,790/- including addition of income from house property Rs. 83,32,258/-, under the normal provisions of the Act and at an income of Rs. 71,40,25,930/- u/s 115JB of the Act, vide order dtd. 24-12-2009 passed u/s 153 r.w.s. 143(3) of the Act. 3. On appeal, the ld. CIT(A) while sustaining the addition of share issue expenses Rs. 2,12,500/- deleted the addition made under the head income from house property Rs.

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hat the actual rental received were totally disproportionate considering the value of the property. 5. The brief facts of the above issue are that during the course of assessment proceedings, it was inter alia observed by the A.O. that the assessee in the year April, 2004 had rented out its flat on the 4th floor in Beachwood House, Juhu Tara Road, Juhu, Mumbai along with the terrace and swimming pool to M/s Aventis Pharma Ltd. (APL) which is an Multinational Pharmaceutical Company for a monthly rent of Rs. 1,00,000/- for the first 10 months which was later extended for a further period of 3 months at the rate of Rs. 10,83,333/- per month. The extension of license period was made following the specific request of the tenant. The total area of the flat given on lease was admeasuring approx. 3,500 sq. ft. with use of the terrace and swimming pool. As per the agreement, the assessee has received a refundable security deposit amounting to Rs. 3,50,00,000/. He further observed that the asses

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ouse property as under:- Annual Letting out value Rs. 1,20,00,000/- Property tax paid (-) Rs. 96,774/- Rs. 1,19,03,226 Deduction u/s 24(a) of the I.T. Act 1961 @ 30% (-) Rs. 35,70,968 Total income in respect of property let out to APL Rs. 83,32,258/- ============= 6. On appeal the ld. CIT(A) following the decision of the Tribunal in DCIT v. Reclamation Realty India Pvt. Ltd. in ITA No. 1411/Mum/07 for A.Y. 2004-05 dtd. 26-11-2010, Hon ble High Court decision in CIT v. Prabhabai Bansali (141 ITR 419 (Cal) & M.V. Sonavala v. CIT (177 ITR 246 (Bom) held that the addition cannot be made in respect of notional return under the head Income from House Property and accordingly directed the A.O. to delete the addition. He also directed to reduce the permissible deduction u/s 24(a) of the Act by taking the revised annual value of the property. 7. At the time of hearing, the ld. D.R. supports the order of the A.O. 8. On the other hand, the ld. Counsel for the assessee, at the outset, submits

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uctions Ltd. (supra) the Tribunal after considering the provisions of section 23 and the decision of the Tribunal in the case of Reclamation Realty India Pvt. Ltd. (supra) wherein it has been held that we find that the Bombay High Court which is the jurisdictional High Court has held that the rateable value under the Municipal law has to be adopted as annual value u/s. 23(a) of the Act , has held that the A.O. has grossly erred by calculating the annual let out value by estimating the market value of the property at Rs. 7 crores and at the same time ignoring the fact that the Municipal Rateable Value given by the Government Authority i.e Mumbai Municipal Corporation at Rs. 1,55,310/-, is much lower than the actual rent received by the assessee and accordingly upheld the order passed by the ld. CIT(A) in deleting the addition made by the A.O. Similar view has been taken by the Tribunal in other cases cited supra. 11. In the absence of any contrary material or distinguishing feature brou

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ee company without appreciating the facts that the deemed dividend has to be taxed on advances or loan to any concern as defined in Explanation 3(a) to section 2(22)(e), in which common shareholder is a member or a partner and such a shareholder has a substantial interest as defined in Explanation 3(b) of section 2(22)(e). b. On the facts and circumstances of the case and in law, the CIT(A) erred in deleting the addition of Rs. 74,06,226/- being deemed dividend within the meaning of section 2(22)(e) of the I.T. Act 1961. 13. The brief facts of the above issue are that from the balance sheet of the assessee as at 31-3-2002, the A.O. observed that the assessee has credited share application money of Rs. 1,40,03,700/- from M/s New Dimension Consultants P Ltd. (NDCPL). He further observed that the share holding pattern of the assessee company and M/s NDCPL as at 31-3-2001 and 31-3-2002 was as under:- Sl No Name of the shareholder No. of shares held in assessee 31.3.01 31.3.02 No. of shares

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i is beneficial share holder of KPPL which has received advance in the garb of share application money of Rs. 74,06,226/- from NDCPL of which Mr. Vikas Oberoi is a beneficial share holder and hence the provisions of section 2(22)(e) are applicable and accordingly he made an addition of Rs. 74,06,226/- to the total income of the assessee. 14. On appeal the ld. CIT(A) while relying on the decision of Hon ble jurisdictional High Court in CIT vs. Universal Medicare Private Limited (2010) 324 ITR 264 (Bom) held that the appellant company is not holding any shares in NDCPL, hence, the addition cannot be made in the hands of the appellant company and accordingly deleted the addition made by the A.O. 15. At the time of hearing the ld. D.R. supports the order of the A.O. 16. On the other hand the ld. Counsel for the assessee submits that since the assessee company is not holding any share in NDCPL therefore in view of the decision of Special Bench of the Tribunal in ACIT v. Bhaumik Colour (P.)

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ial shareholder then the provisions of section 2(22)(e) will not apply. 19. In CIT V/s Universal Medicare Private Limited (2010)324 ITR 263 (Bom), their Lordships after considering the aforesaid decision of the Special Bench of the Tribunal has held (page 269, Placitum 10): ………..The definition does not alter the legal position that dividend has to be taxed in the hands of the share- holder. Consequently in the present case the payment, even assuming that it was a dividend, would have to be taxed not in the hands of the assessee but in the hands of the shareholder. The Tribunal was, in the circumstances, justified in coming to the conclusion that, in any event, the payment could not be taxed in the hands of the assessee. We may in concluding note that the basis on which the assessee is sought to be taxed in the present case in respect of the amount of Rs. 32,00,000 is that there was a dividend under section 2(22)(e) and no other basis has been suggested in the order

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of Annual Letting Value of the property , in terms sec. 23(1)(a) of the I.T. Act, 1961. e. Whether on the facts and circumstances of the case the Ld. CIT(A) erred in holding that the rateable value under the Municipal Laws has to be mandatorily adopted as annual value u/s 23(1)(a), disregarding the facts that the actual rental received were totally disproportionate considering the value of the property. 21. At the time of hearing both the parties have agreed that the facts of the above issue are similar to the facts of the case in ITA No. 4330/Mum/2011 for A.Y. 2007-08, therefore, the plea taken by them in the said appeal may be considered while deciding the above grounds of appeals. 22. Having carefully heard the submissions of the rival parties and perusing the material available on record and in absence of any distinguishing feature brought on record by the parties, we direct the A.O. to follow our findings recorded in paras 9 to 11 of this order. We hold and order accordingly. The

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Goods and Services Tax – Started By: – lakshmi gfg – Dated:- 10-6-2012 Last Replied Date:- 21-3-2016 – as it was said that gst applicability date will be announced in the moonsoon session………………what is the last updated info for gst Reply By Pradeep Khatri – The Reply = Though various statements has been aired by the Hon ble FM, but so such confirmation as yet. – Reply By Ganeshan Kalyani – The Reply = Forth year it is going to touch, but no date for implementation of GST is heard as

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