TAX REFUND IN TIMELY MANNER AND THE TIMELY ISSUE TO EXPORT IMPORT TRADERS
TAX REFUND IN TIMELY MANNER AND THE TIMELY ISSUE TO EXPORT IMPORT TRADERS
The Government is initiating all steps that the exporters get their tax refunds in time manner and the timely issue of refunds has always been a matter of priority and concern for the Government. Field formations have been directed to ensure prompt and timely disbursal of drawback, rebate claims on exports and other incentives on exports, as may be available under the relevant scheme.
Certain representations have been received from different exporters associations in this regard, which have been taken note of.
Details of incentives and other relief, inter-alia, being offered to exporters and importers are as under:
- Duty Drawback to exporters to neutralize Customs, Central Excise Duty and Service Tax suffered on inputs/inputs services used in manufacture of export goods.
- Benefit of rebate of Central Excise duty paid on exported goods is allowed under Rule 18 of the Central Excise Rules, 2002. Goods are also allowed clearance for export under bond for the same purpose under Rule 19 of the Central Excise Rules, 2002.
- Refund of CENVAT credit of inputs or input services to a manufacturer who clears a final product or an intermediate product for export without payment of duty under bond or letter of undertaking or a service provider who provides an output service which is exported without payment of Service Tax, under Rule 5 of Cenvat Credit Rules, 2004.
- In order to boost exports in garment sector, Government has provided various support measures. One such measure is duty free entitlement for import based on export performance, wherein manufacturers of textile and leather garments registered with their respective Export Promotion Council are allowed to import certain specified items duty free of value upto 5 per cent of the FOB value of the textile garments or 3 per cent of the FOB value of the leather garments, exported during the preceding Financial year for use in the manufacture of garments for export by such manufacturer. Similarly, the incentives are also provided to the exporters of handicrafts, leather products including footwear, handlooms, cotton and man-made textile made-ups. etc.
- Duty exemption schemes (Advance Authorization/Duty Free Import Authorizations and Export Promotion Capital Goods (EPCG) as well as the incentive schemes (Merchandise Export from India Scheme and Service/Export from India Schemes) extended to exporters administered by Director General of Foreign Trade (DGFT), Department of Commerce.
- Rebate of whole of the duty paid on excisable inputs or whole of the Service Tax and cess paid on all input services used in providing service exported in terms of Rule 6A of Service Tax Rules, 1994.
- Granting rebate of service tax paid on taxable services which are received by an exporter of goods and used for export of goods.
- Allowing the holder of VisheshKrishi and Gram UdyogYojana (VKGUY), Focus Product Scheme (FPS) and Focus Market Scheme (FMS) scrip to pay service tax leviable on taxable services received by them by debiting in scrip.
- Section 10AA of Chapter VI-A of the Income-tax Act, 1961 allows 100% deduction on profits and gains derived from export of certain articles or things subject of fulfillment of conditions prescribed therein. Further, exporters and importers are also eligible for claiming deductions in respect of profits and gains derived from such business as per provisions contained in Part D of Chapter IV (Profits and gains of business or profession) and Chapter VIA (Deductions to be made in computing total income).
Amendment in Benami Act
There is a proposal to amend the Benami Act. The Benami Transactions (Prohibition) Amendment Bill, 2015 was introduced in the Lok Sabha on 13th May, 2015 to amend the Benami Transactions (Prohibition) Act, 1988.
Any transaction within the definition of ‘benami transaction’ shall attract consequential action under the BenamiTransactinos (Prohibition) Act, 1988 after the enactment of the Benami Transactions (Prohibition) Amendment Bill, 2015. Clause 4 of the Benami Transactions (Prohibition) Amendment Bill, 2015 defines a “benami transaction” to mean,-
- A transaction or an arrangement –
(A). where a property is transferred to, or is held by, a person, and the consideration for such property has been provided, or paid by, another person; and
(B). the property is held for the immediate for future benefit, direct or indirect, of the person who has provided the consideration, except when the property is held by-
- a Karta, or a member of a Hindu undivided family, as the case may be, and the property is held for his benefit or benefit of other members in the family and the consideration for such property has been provided or paid out of the known sources of income of the Hindu undivided family;
- a person standing in a fiduciary capacity for the benefit of another person towards whom he stands in such capacity and includes a trustee, executor, partner, director of a company, a depository or a participant as an agent of a depository under the Depositories Act, 1996 and any other person as may be notified by the Central Government for this purpose;
- any person being an individual in the name of his spouse or in the name of any child of such individual and the consideration for such property has been provided or paid out of the known sources of income of the individual;
- Any person in the name of his brother or sister or lineal ascendant or descendant, where the names of brother and sister or lineal ascendant or descendant and the individual appear as joint-owners in any document, and the consideration for such property has been provided or paid out of the known sources of income of the individual; or
(C). A transaction or an arrangement in respect of a property carried out or made in a fictitious name; or
(D). A transaction or an arrangement in respect of a property where the owner of the property is not aware of, or, denies knowledge of, such ownership;
(E). A transaction or an arrangement in respect of a property where the person providing the consideration is not traceable or is fictitious.
Bar Council of India
The Bar Council of India (BCI), has introduced an exhaustive mechanism/ procedure for ascertaining the number and identify of fake or non-practicing lawyers and with that purpose it has framed Bar Council of India Certificate and Place of Practice (Verification) Rules, 2015. The BCI has framed these Rules in order to check and stop the occurrence of the use of such fake degrees or to stop the non-practicing persons enrolled with the State Bar Council from getting benefit or any welfare schemes of all the State Bar Councils/ Government or any other institutions. BCI through these Rules has formed the Committees through State Bar Councils in order to implement the verification rules. Further, within a period of 6-7 months, the entire verification process will be completed and fake lawyers will be identified.
Special Economic Zones (SEZs)
The Board of Approval (BoA) on Special Economic Zones (SEZs) in its meeting held on 19th May, 2015, has approved for cancellation/de-notification of 22 SEZs as the progress made by the Developers of said SEZs are not satisfactory. The approval is subject to the concerned Development Commissioner of SEZ furnishing a certificate in the prescribed format that the developer has not availed any tax/duty benefits including Service Tax Exemptions, if any, under the SEZs Act and Rules, or has refunded any such benefits availed by it and no objection certificate from concerned State Government.
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