Can we get any benefits such as advance Licence or Duty Entitlement Passbook (DEPB) on exports to Nepal and Bhutan? If no benefit is available, can such turnover be included in our export turnover for the purpose of export value achieved for status recognition purposes?
For exports to Nepal/Bhutan, benefits like advance authorisation, DEPB etc., will not be available if payment is realised in non-convertible rupees. For status recognition, the Foreign Trade Policy stipulates only export performance. However, the application form ANF-3A calls for a declaration and Chartered Accountant Certificate that payment has been realised. However, it is not stipulated that the payment has to be in freely convertible currency. So, in my opinion, you can include exports to Nepal/Bhutan in rupees in your export turnover for the purpose of status recognition.
We refer to your article published in Business Standard (dated 2nd May, 2011) regarding the valuation of excise duty on a Maximum Retail Price (MRP) basis. We are going to import spares for heavy duty trucks mounted with oilfield equipment, and the same will be sold to our customers in India. We want to know whether we should declare the MRP for valuation of excise duty at the time of filling of Bill of Entry.
It depends on what spare parts you import. If the item is covered under notification no. 49/2008-CE(NT) dated 24.12.2008, MRP-based valuation with abatement will come into play. Further, for levy of additional duty of customs on the basis of MRP on the imported goods, if the conditions specified in the first proviso to sub-section (2) of Section 3 of the Customs Tariff Act, 1975 are satisfied, the MRP must be declared at the time of filing the bill of entry and duty paid accordingly.
We have a Special Economic Zone (SEZ) Unit. Can we buy certain goods from second-stage dealers registered under Central Excise, without excise duty payment?
It would not be possible for the excise dealer to supply goods without excise duty under any of the provisions in the Central Excise law. However, the dealer may be able to claim rebate of excise duty on the basis of CEBE Circular no. 294/10/97-CX dated 30th January 1997. Besides other conditions specified in the said Circular, the goods must be in original factory-packed condition and must be required for carrying out authorised operation of the SEZ Unit. The goods must be admitted into the SEZ on the basis of ARE-1 and bill of export.
Recently, has ‘temporary accommodation service’ been brought under the service tax net? Is the tax required to be collected on the published tariff?
The actual tax will have to be paid on the amount charged —i.e., declared tariff minus any discount offered. “Declared tariff” includes charges for all amenities provided in the unit of accommodation — like furniture, air-conditioner, refrigerators, etc — but does not include any discount offered on the published charges for such unit.
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