News Update

CBDT invites inputs from taxpayers on drafting of New Direct Tax LawI-T - When assessee has failed to deduct tax at source and even deductee has not paid tax on payment received as it filed loss return, assessee certainly cannot escape from consequences of Ss 201(1) & 40(a)(ia): HCGovt withdraws export duty on sugar exportsAdmission in PG Medical Courses - Govt hikes quota to 5% for differently abledGovt has sanctioned prosecution only against 12 IAS & IPS in DA cases in 3 yrsGovt withdraws export duty of 20% on sugar to stabilise prices in domestic marketACC appoints 1988 batch IRS Simanchala Dash as Pr Special Director in Enforcement Directorate for two yearsAfter UK India also warns Facebook & others of action if they try to influence electoral process through unfair meansDraft agri export policy seeks reform in 'APMC Act'GST should be considered as the start of a process, not the end (See 'JEST GST on GST Home Page')Anti-dumping duty imposed on Dimethylacetamide imported from PR China & TurkeyAnti-dumping duty on Meta Phenylene Diamine (MPDA) imported from PR China - levy extended till 21 March 2019Tariff Item 0713 20 Chickpeas sub-divided further into Kabuli Chana, Bengal gram (desi chana) & OthersSl. no. 21A to Notification 50/2017-Cus, Entry Kabuli Chana amended to reflect change in first scheduleExport duty on raw sugar, white or refined, reduced from 20% to NilST - There is no scope to exclude 'Academic Courses' conducted by respondent IIPM from purview of Service tax levy: CESTATIs notification 1/2018-CT(R) relating to Real Estate Services retrospective?I-T - CBDT Circular prohibiting 'freebies' to doctors for promotion of sales is not retrospective in nature: ITATRow over Royalty on Mineral RightsCus - S.19of CA, 1962 is an empowerment for classification, and not valuation - Matter remanded: CESTATWrit petition challenging constitutional validity of Section 140(3)(iv) of CGST Act dismissed by Bombay High Court; refuses to strike down 1 year time limit for transitional credit availment; holds transitional credit under GST law is a clear case of concession; no discrimination of dealers vis-a-vis manufacturers/service providersSC admits misuse of SC/ST Act; says no immediate arrest of public servantsSushma Swaraj admits that 39 Indians kidnapped by ISIS are officially deadICLS should promote ethics in business, says PresidentPostal Department inks MoUs to design new stamps & promote PhilatelyGovt partners with private entities to protect cyber-spaceCX - A Writ Petition would lie against an OiO, against which an appeal was filed and dismissed as time-barred - HC to exercise discretion, no straightjacket formula: HC Full BenchST VCES, 2013 is not an open ended scheme - benefits thereunder cannot be derived dehors scheme or after its life or duration has come to an end: High Court
12 Key points to know about Revised Foreign Trade Policy 201520


DECEMBER 06, 2017

By Kalirajan D, Advocate

THE much awaitedmid-term review of the Foreign Trade Policy 2015 – 20 (for brevity 'the FTP 2015 – 20') has been completed and the revised FTP 2015 – 20 has been notified by the Central Government vide Notification No. 41/2015-2020 dated 05.12.2017.Basically, the FTP 2015 – 20 has been amended in such a way that it is in line with the provisions of Goods and Services Tax (for brevity 'GST').It also provides impetus to specified labour intensive industries,such as, Textile, leather, agriculture, carpets, marine-products, etc., and also specified service sectors, by way of providing enhanced benefits under the Merchandise Export from India Scheme and the Service Export from India Scheme (for brevity 'MEIS'& 'SEIS').Following are the major key points one should know about the Revised FTP 2015 – 20.

MEIS & SEIS Scheme

1. SEIS Rate has been increased from 5% to 7% for export of Professional Services, R&D Services, Rental & Leasing services, Business services, Tourism related services, Recreational, Cultural, and Sporting services, Transport services, Construction and related Engineering services, Educational services, and Health related and Social services. Notified SEIS Rate would be valid till 31.03.2018. It will be revised and announced at later point of time.

2. MEIS Rate has been increased from 5% to 7% for export of specified Agricultural products, Textile, leather, agriculture, carpets, marine-products, etc.

3. Few ineligible categories of exports/sectors provided under the Para 3.06 and 3.09 of FTP 2015–20 has been shifted to the Appendix 3B & 3D of HBP 2015 - 20. This may be with a view to empower the DGFT to amend such ineligible categories/sectors, from time to time.

Advance Authorisation Scheme

4. Trust Based Self Ratification Scheme: Where SION is not notified by the DGFT, an Authorised Economic Operator (AEO)can obtain the Advance Authorisation based on the wastage norms declared by them to be certified by the Independent Chartered Engineer. Such cases will not be referred to the Norms Committee for fixation of Adhoc norms. This facility may be extended to other categories of exporter also.

EPCG Scheme

5. Installation certificate has to be obtained from the jurisdictional Customs Authorities instead of Central Excise Authorities, or from the Independent Chartered Engineer, at the option of the EPCG Holder.

6. Capital goods installed at one unit are permitted to be shifted to another unit, provided the other unit is appearing in the IEC and RCMC of the EPCG Holder.

7. New Appendix 5F, listing out the negative list of items not permitted to be imported under the EPCG scheme has been notified.

EOU Scheme

8. Administrative control has been shifted from the Central Excise Authorities to the Customs Authorities. No Due Certificate has to be obtained from the Customs Authorities for exiting from the EOU Scheme.

9. No value limit on DTA sale of goods by an EOU. Limit on DTA sale upto 50% of FOB value of exports has been removed. However, said value restriction continues for DTA sale of services. Advance DTA sale retained upto 50% of estimated exports for first year.

Deemed Exports

10. Scope of 'Deemed exports' for the purpose of the FTP and the GST is explained.

11. Erstwhile list of categories of Deemed Exports for the purpose of FTP continues except supply of Marine Freight Containers by 100% EOU which is now excluded.

12. TED refund benefit is restricted for supply of Excisable products under Schedule 4 of Central Excise Act 1944, to the AA holder and to the EOU.

(The above article only highlights the major changes and is not an exhaustive list. Author is associated with Lakshmikumaran & Sridharan and views expressed above are strictly personal.)

(DISCLAIMER : The views expressed are strictly of the author and doesn't necessarily subscribe to the same. Pvt. Ltd. is not responsible or liable for any loss or damage caused to anyone due to any interpretation, error, omission in the articles being hosted on the site)