The Reserve Bank of India (RBI) needs to revisit certain provisions in its Master Circular on Export of Goods and Services, so as to make them more exporter-friendly.

<B>TNC Rajagopalan:</B> RBI should reconsider provisions of master circular on export of goods and services

Business Standard

Under the post-export EPCG duty credit scheme, do we have to apply for the EPCG authorisation before export, or after export? Also, can we pay the duty through the Status Holder Incentive Scrip (SHIS)? As per notifications 5/2013-Cus and 6/2013-Cus both dated 18.02.2013, application for EPCG authorisation should be filed before import. Also, the EPCG authorisation should be obtained and got registered with Customs before import. If the authorisation is a zero duty variant, you should obtain the authorisation before 31.3.2013 and complete imports before 31.12.2013. It is the duty credit that is granted as remission of basic customs duty paid that you can claim after exports, in proportion to the export obligation fulfilled. The notifications say that the said authorisation is not for import under duty exemption but for import of the goods specified in the Table 1 annexed to the notification on full payment of applicable duties in cash. Therefore, you cannot pay the duty under the scheme

'EPCG authorisation must be registered with Customs before import'

The main interest in this year's Budget hovered around the measures to curb fiscal deficit to reasonable levels and to boost investment and savings.

Prudent FM with a flawed team

We are paying two per cent excise duty on our goods as per notification no. 1/2011-CE dated 1.3.2011 as amended. We are not taking CENVAT (Central Value-Added Tax) credit of the duty paid on the inputs or tax paid on input services, as the exemption notification does not allow that. But we want to take credit of the duty paid on capital goods. Can we do that? As per Rule 2(d) of CENVAT Credit Rules, 2004, â€œexempted goodsâ€ means excisable goods which are exempt from the whole of the duty of excise leviable thereon, and includes goods which are chargeable to â€œNilâ€ rate of duty and goods in respect of which the benefit of an exemption under Notification No. 1/2011-C.E., dated the 1st March, 2011 or under entries at serial numbers 67 and 128 of Notification No. 12/2012-C.E., dated the 17th March, 2012 is availed. So, the goods you manufacture are treated as exempted goods for the purpose of CENVAT Credit Rules, 2004. As per Rule 6(4) of the said Rules, â€˜no CENVAT cre

'CENVAT credit not allowed on capital goods used to make exempted goods'

Despite amendments, the scheme looks unattractive as it requires upfront payment of duties and a complex way to get it back

TNC Rajagopalan: Doubts remain over tweaked post-export EPCG scheme

The Reserve Bank of India (RBI) has released the final report of the working group on issues related to gold imports and gold loans.

On reducing the old glitter

Under S.No.(3) of Service Tax Notification No.12/2012-Service Tax dated 17.03.2012, &ldquo;services by an entity registered under Section 12AA of the Income Tax Act, 1961, by way of Charitable Activities&rdquo;, is exempt from Service Tax.

'Duty credit scrips can be used to regularise defaults in export obligation'

TNC Rajagopalan: RBI should reconsider provisions of master circular on export of goods and services

Essentially, forfaiting involves selling a bill of exchange without recourse. It frees the exporter from political or commercial risks. It does not affect his borrowing limits/capacity and relieves him from the botheration of credit administration and collection problems.

TNC Rajagopalan: Forfait trade gets new global rules

The Director General of Foreign Trade (DGFT) has issued a public notice (no.31 dated November 21, 2012) allowing recipient of goods also to claim refund of terminal excise duty (TED) against deemed exports supplies on production of a disclaimer from the supplier in a new format. This amendment has caused some confusion but it is only correction of an error that had crept in earlier.

TNC Rajagopalan: Notice on claiming refund of terminal excise duty is a correction of an earlier error

Last week, the commerce ministry reported that exports had fallen by 14.6% in July as compared to last year.&nbsp;Anand Sharma, the commerce minister who had a meeting with representatives from industry and export promotion councils (EPC), expressed serious concern and said that the Government would bring down transaction costs so that things would take a turn for the better in the third quarter of this fiscal year.

TNC Rajagopalan: Cutting down transaction costs may boost exports

The annual supplement to the Foreign Trade Policy (FTP), released last week, gives some additional benefits to exporters by way of duty credits, removes some unnecessary hurdles, makes some procedures simpler and fails to address some issues. Its new features allow duty credits under post-export EPCG (Export Promotion Capital Goods) scheme and utilisation of duty credits for payment of excise duty on domestic sourcing.

TNC Rajagopalan: Exploring new vistas in foreign trade policy

While releasing this year&rsquo;s annual supplement to the Foreign Trade Policy, the commerce minister talked about electronic transmission of foreign exchange realisation details on exports by banks on a daily basis under the Electronic Bank Realisation Certificate (e-BRC) initiative. On the same day (June 5, 2012), the Director General of Foreign Trade (DGFT) issued public notice (no. 2) stating that the existing system of physical BRC along with the new system of e-BRC will run concurrently for a period of one month and thereafter, issuance and transmission of e-BRC to DGFT in electronic form would be mandatory. The DGFT&rsquo;s website&nbsp;dgft.gov.in&nbsp;gave the technical guidelines under the e-BRC icon. Last week, the DGFT issued policy circular (no.1 dated June 18, 2012) clarifying certain matters but exporters, brought up on manual BRC, still have some doubts.

TNC Rajagopalan

TNC Rajagopalan

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TNC Rajagopalan: RBI should reconsider provisions of master circular on export of goods and services

'EPCG authorisation must be registered with Customs before import'

Prudent FM with a flawed team

'CENVAT credit not allowed on capital goods used to make exempted goods'

TNC Rajagopalan: Doubts remain over tweaked post-export EPCG scheme

On reducing the old glitter

'Duty credit scrips can be used to regularise defaults in export obligation'

TNC Rajagopalan: RBI should reconsider provisions of master circular on export of goods and services

TNC Rajagopalan: Forfait trade gets new global rules

TNC Rajagopalan: Notice on claiming refund of terminal excise duty is a correction of an earlier error

TNC Rajagopalan: Cutting down transaction costs may boost exports

TNC Rajagopalan: Exploring new vistas in foreign trade policy

TNC Rajagopalan: Doubts about electronic bank realisation certificates