Exemption for EOUs, STP - Amendments
26 05 2015
Tuesday
PERHAPS as a part of aligning with the Foreign Trade Policy and ease of doing business, the Government has amended two notifications.
Notification No. 22/2003-Central Excise, dated the 31st March, 2003 : Exemption to goods brought into EOUs/STPs/EHTPs;
Utilisation of duty free goods : As per Condition 4 clause (a), sub-clauses (i) and (ii) of the Notification, the user industry has to undertake to pay the duty with interest;
i. in case of capital goods, if such goods are not proved to be used within the user industry within a period of one year from the date of procurement or extended period up to a maximum of five years;
ii. in case of other goods, are not used within three years or the extended period as may be allowed.
Now, this is amended to allow the use within the period of validity of the Letter of Permission (LoP).
Destruction of goods : As per para 3 of the notification, duty need not be paid if the capital goods or reject, waste or scrap material, if such goods are destroyed within the user industry in the presence of the central excise officer or outside the user industry, where it is not possible or permissible to destroy the same within the user industry.
Now they can be destroyed within the unit after intimation to Customs authorities or destroyed outside the unit with permission of Customs authorities.
LoP Defined : A new clause has been inserted in the notification to define LoP; "Letter of Permission (LoP)" has the same meaning as assigned in Chapter 6 of the Foreign Trade Policy 2015-20 notified by the Government of India in the Ministry of Commerce and Industry, published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification No. 01/2015-2020, dated the 1st April, 2015.
The Provisions before and after the amendment are as:
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Condition (4), sub-clauses (i) and (ii)
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(i) in the case of capital goods, such goods are not proved to the satisfaction of the said officer to have been installed or otherwise used within the user industry within a period of one year from the date of procurement thereof or within such extended period not exceeding five years as the said officer may, on being satisfied that there is sufficient cause for not using them as above within the said period, allow ;
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i) in the case of capital goods, such goods are not proved to the satisfaction of the said officer to have been installed or otherwise used within the user industry, within the period of validity of the Letter of Permission (LoP);
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(ii) in the case of goods other than capital goods, such goods as are not proved to the satisfaction of the said officer to have been used in connection with the production or packaging of goods in accordance with SION for export out of India or cleared for home consumption within a period of three years from the date of procurement thereof or within such extended period as the said officer may, on being satisfied that there is sufficient cause for not using them as above within the said period, allow:
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ii) in the case of goods other than capital goods, such goods as are not proved to the satisfaction of the said officer to have been used in connection with the production or packaging of goods for export out of India or cleared for home consumption within the period of validity of the Letter of Permission ( LoP )
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paragraph 3, clause (iii)
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3. Subject to the satisfaction of the said officer, duty shall not be leviable in respect of -
(iii) the capital goods or reject, waste or scrap material, if such goods are destroyed within the user industry in the presence of the central excise officer or outside the user industry, where it is not possible or permissible to destroy the same within the user industry:
Provided that the remnants, remains or scrap after such destruction, if cleared into Domestic Tariff Area, applicable duty shall be levied on such goods:
Explanation. - The consultancy fees received by software development units in convertible foreign currency for consultancy service for development of software 'on site' abroad shall be deemed to be export for the purposes of fulfillment of positive Net foreign exchange Earning under this notification.
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3. Subject to the satisfaction of the said officer, duty shall not be leviable in respect of -
(iii) capital goods, raw material, consumables, spares, goods manufactured, processed or packaged, and scrap or waste or remnants or rejects are destroyed within the unit after intimation to Customs authorities or destroyed outside the unit with permission of Customs authorities:
Provided that the remnants, remains or scrap after such destruction, if cleared into Domestic Tariff Area, applicable duty shall be levied on such goods:
Provided further that this provision shall not apply to gold, silver, platinum, diamond, precious and semi precious stones.";
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Letter of Permission defined.
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Notification No. 30/2015-CX, Dated: May 25, 2015
Notification No. 52/2003- Customs, dated the 31st March, 2003 : EXEMPTION to goods imported for EOUs/STPs/EHTPs: This is an almost identical notification as the Excise Notification No. 22/2003. And similar amendments are made in that notification also.
Notification No. 34/2015-Customs, Dated: May 25, 2015
FTP - Application Form for Served From India Scheme (SFIS) - Notified
DGFT has notified Form ANF3B-2 for claiming benefit of Served From India Scheme (SFIS) for foreign exchange earned in the year 2014-15.
DGFT Public Notice No. 14/2015-2020., Dated: May 25, 2015
Even a single tear matters - CBDT Chief
SPEAKING at the 31st Annual conference of Principal Chief Commissioners of Income Tax, Principal Director Generals of Income Tax, Chief Commissioners of Income Tax and Director Generals of Income Tax, yesterday in New Delhi, the Chairperson of the CBDT Ms Anita Kapur said that the focus of the Department is the taxpayer who is the key stakeholder. She iterated the Department's commitment to provide a fair, transparent, consistent, responsive and supportive tax regime. Speaking of the Department's resolve to address taxpayer grievances, she said "Even a single tear matters".
Addressing the conference, the Finance Minister said that the policy of the Government is that nobody should be harassed and the evaders should not succeed. He exhorted the officers to be prompt in redressing the grievances of the taxpayers, expand the tax base in a non-intrusive manner even as they strive to achieve the revenue generation targets.
From Nil Board to Full Board
THE President of India is pleased to appoint five members to the Central Board of Excise and Customs (CBEC), filling all the vacancies.
This is the new Board.
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S.No
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Name of the officer (S/Shri)
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Date of Birth
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Date of retirement
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Date of occurrence of vacancy
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1
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Kaushal Srivastava Chairman (1978)
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01.07.1955
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30.06.2015
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Members
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2
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Joy KumariChander (1978)
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14.05.1955
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31.05.2015
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3
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Najib Shah (1979)
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11.03.1957
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31.03.2017
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01.05.2014
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4
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Ashok K. Kaushal (1979)
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20.09.1955
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30.09.2015
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01.06.2014
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5
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V.S. Krishnan (1979)
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29.11.1955
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30.11.2015
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04.11.2014
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6
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Neerja Shah (1979)
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09.09.1956
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30.09.2016
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01.12.2014
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7
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Vanaja N. Sarna (1980)
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22.06.1958
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30.06.2018
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01.03.2015
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These five vacancies were already existing and one more vacancy arises this month end when Ms. Joy Kumari Chander retires. The Chairman will retire next month and that is another vacancy. As can be seen from the table above, the first vacancy occurred on 1.5.2014 and if they had filled up the vacancies as they occurred, Mr. Najib Shah would have become a Member of the Board in May 2014 and Mr. Ashok Kaushal would have followed him in June. They lost one year as Board Members. In fact their batch mate Mr.Shashi Bhushan Singh became a Board Member more than a year ago.
This time around, they seem to have followed seniority strictly. Only one officer has been overlooked. Out of the just promoted Members, one will have a service of four months and another six months.
Department of Revenue Office Order No. 123/2015., Dated May 25 2015.
Service Tax from major service categories
(Rs in crore)
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FYE
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2010
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2011
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2012
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2013
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2014
|
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Telecommunication
|
2,885
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3,902
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5,402
|
7,538
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12,643
|
|
General Insurance Premium
|
3,126
|
3,877
|
5,234
|
6,321
|
8,834
|
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Works Contract
|
1,849
|
3,092
|
4,179
|
4,455
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7,434
|
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Manpower Recruitment
|
2,077
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2,870
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3,847
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4,432
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7,335
|
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Banking and Financial Services
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4,066
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4,345
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5,876
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4,964
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7,185
|
|
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No. of registrations
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13,39,812
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14,94,449
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16,76,105
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18,71,939
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12,76,861
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Source: CAG's Report No. 4 of 2015
Until Tomorrow with more DDT
Have a nice day.
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