Page 4 - Sme Chatroom

'Anti-dumping, safeguard duties will be part of the value for levy of IGST'

Any IGST you pay can be taken as input tax credit

'To import goods, excise dealer must register separately as importer'

If registered as Excise dealer, how to import goods and issue Cenvat bill and pass on Cenvat credit

'No drawback available if imported goods are used and re-exported'

Service tax will be payable on liquidated damages or penalty for late delivery or non-delivery of goods

Trading not allowed under export-oriented unit scheme

The facility for trading units under the EOU scheme was withdrawn in 2002

'Online courses offered to students abroad by Indian entity not taxable'

Place of service provision of service is in non-taxable territory and is therefore, not taxable

'If provider and receiver of service are both in India, service is taxable'

Service tax is payable on the transportation services provided outside India

'Export-oriented units may transfer capital goods to other EOUs'

The procedure to transfer capital goods imported by one export oriented unit to another EOU

'Supplies made from DTA units to SEZ units are not eligible for MEIS'

Chatroom with T N C Rajagopalan

'To expedite refund, take steps listed in chapter 32 of Customs Manual'

CBEC Circular no. 984/8/2014-CX dated September 16, 2014 says that in all cases where the appellate authority has decided the matter in favour of the appellant, refund with interest should be paid to the appellant within 15 days

Supplies to SEZ can be counted as part of export obligation

Edited excerpts from the SME chatroom dicussions

'If export obligation is fulfilled, duty exemption need not be surrendered'

We refer to your article titled 'DRI summons for no clear reason' in Business Standard on October 24, 2016. How do we deal with the summons that we have received?

'Job-worked goods can be counted in discharge of export obligation'

We are an Export Oriented Unit (EOU). When we supply our manufactured goods to advance authorisation holders in a Domestic Tariff Area (DTA), we do not charge duty as per S.No. 22 of Notification No. 23/2003-C.E., dated March 31, 2003. Our excise authorities permitted this but now the audit team says that we have to surrender the exemption availed on the inputs used in the manufacture of the goods supplied at "nil" duty, in accordance with the second proviso to para 6 of Notification No. 22/2003-C.E., dated March 31, 2003, and proviso under para 3 of Notification 52/2003-Cus., dated March 31, 2003. Is there any argument we can put before them to avoid this unexpected liability?In fact, the recent CBEC Circular no. 1046/34/2016-CX., dated September 16, 2016 covers this issue specifically and says that the said provisos (mentioned above) will not apply in case of supply of manufactured goods by EOU to Advance Authorisation holder in DTA, without payment of Central Excise duty. You can sh

'Re-export of imported goods to same supplier not needed for drawback'

Drawback under Section 74 should be allowed on merits without insisting on re-export of goods to the same supplier or that the re-export should take place from the same port

'Registered dealers can pass on duties paid on imports to buyers in DTA'

We are traders of paper and Kraft liner board in Bangalore. We are registered with the excise department and importing (100 per cent duty paid) and selling within India, and doing a little export. Now we have received an order from a SEZ unit, which has advised us to charge excise duty (pro-rata) and later get a refund from the excise department. The SEZ unit will be issuing us a disclaimer certificate for not claiming excise duty at their end. Please advise on this and on the procedure also. Before starting, do we have to seek prior permission from our excise range? What are the documents to be received from the SEZ unit? First, please note that excise duty is a duty on goods manufactured in India. Since your item is imported, there is no question of paying any excise duty at all. What you pay as an importer is additional duty of customs (CVD), which is equal to excise duty. You also pay four per cent additional duty (SAD) that countervails the sales tax/VAT. As a registered dealer, y

'Drawback available for duty-paid inputs used in export product'

We are exporting a product in which we have used components imported under advance authorisation and also duty-paid imported materials and indigenously manufactured components. Can we claim drawback on complete exported products or on only the imported duty paid and indigenously manufactured components? How can we make the claim and at which rate?As per Para 4.15 of FTP, "drawback as per rate determined and fixed by Central Excise authority shall be available for duty paid imported or indigenous inputs (not specified in the norms) used in the export product. For this purpose, applicant shall indicate clearly details of duty paid input in the application for Advance Authorisation." Also, note that as per Para 4.08 of FTP, you must take into account the value of any input used, on which benefit of DBK is claimed or intended to be claimed for value addition calculation. At the time of export, you should file a DEEC-cum-DBK shipping bill. Thereafter, you should file the application for fix

'Unused imported raw material may be sold by EOUs in DTA'

SME Chatroom | TNC Rajagopalan

'Service tax is payable by provider of online database access services'

A website where some foreign companies place their advertisements is covered under Rule 9(b) of the Place of Provision of Services Rules, 2012

'Merchant exporter's name must be mentioned in shipping bill'

We are merchant exporters and have received a transferable LC. As the first beneficiary, we have transferred the LC in favour of our supporting manufacturers, the second beneficiary. They will ship the goods and present the documents to the transferring bank. We will substitute our invoices for negotiation. The negotiating bank will collect the proceeds from the LC-issuing bank and disburse the proceeds between us and the supporting manufacturer. Our question is: who will be treated as the exporter by the authorities -- we or the supporting manufacturer?As per Article 14(k) of UCP 600, "the shipper or consignor of the goods indicated on any document need not be the beneficiary of the credit." So, you must ask the supporting manufacturer to mention your name as the shipper in the bill of lading. Secondly, you should ask the supporting manufacturer to file the shipping bill giving his name and address and stating that the export is on your behalf and mention your name and address. In tha

'If Indian firm reimburses parent entity abroad, no service tax due'

Since the service is in relation to the immovable property located in the taxable territory, service tax is payable by the service provider

'Customs not justified in asking for CVD plus 4% special duty'

'Site' means any premises made available for manufacture of goods by way of a specific mention in contract