Page 2 - SME

ITeS sector's growth prospects in FY23 augur well for SMEs: CRISIL

In FY22 the ITeS sector's revenue logged 13-15% growth to about Rs 3.1 tn, riding on volume recovery across the three key segments - customer relationship management (CRM), knowledge, and transactions

'AIR DBK available on goods made solely from domestic inputs'

As a matter of rule, no evidence of actual duties suffered on imported or indigenous nature of inputs used, even if the AIR has customs portion, should be insisted upon by field formations

SME Chatroom: 'Assessable value can be different from invoice value'

There is a specific box in the bill of entry for Free of Charge (FOC) imports

CRISIL SME tracker: Export duty will hurt large steel players, spare MSMEs

MSMEs, which make up 90-95 per cent of re-rollers, witnessed a sharp margin contraction in FY21 owing to iron ore unavailability, and logistics and labour issues, among other factors

'Space availability certificate not required for filing in-bond B/E'

The requirement of producing the space availability certificate for clearance of goods to be deposited in a bonded warehouse has been done away with

Twin headwinds lash SMEs in gems and jewellery sector: Crisil SME Tracker

The rise in the prices of gold will also curb demand, though it will support the revenues of SMEs

SME Chatroom: 'SEZ units need to be net foreign exchange earners'

SEZ units have to only achieve positive NFE and so the Customs need not demand refund of customs duty on the inputs

SME Chatroom: Tribunal allows refund of CVD, special additional duty & cess

I suggest you claim refund of CVD, SAD and cess paid towards regularisation of the default under advance authorisation

SME EPC road contractors face shrinking margins as input costs spike

However, national highway projects are typically executed by large contractors, with only a small proportion sub-contracted to SMEs

SME Chatroom: 'IGCR Rules apply only when exemption notifications say so'

The duty concessions are available under exemption notifications and some of them mandate the procedures prescribed under the said IGCR Rules.

'Supplies from DTA to SEZ attract export duty'

Duty credit allowed under the RoDTEP scheme is subject to realisation of sale proceeds within the period allowed by the RBI

'MOOWR is a duty deferment scheme'

There is no customs duty exemption for inputs used in the manufacture of capital goods in a bonded warehouse, even if they are supplied to an EPCG authorisation holder

Revenue outlook bright for electronics SMEs: Crisil SME Tracker

Consumption of electronics in the domestic market is estimated to grow 15-20 per cent to Rs 11-12 trillion, compared with 18-22 per cent growth last fiscal

SME Chatroom: Banks can write off import entry in IDPMS over quality issues

RBI rules allow AD Category-1 banks to close BoE for such import transactions where write-off is due to short shipment or destruction of goods by port/Customs/health authorities

SME Chatroom: Purpose of shipping mark to enable package to be identified

If an LC specifies the details of a shipping mark, the documents mentioning the marks should show these details; additional information is acceptable provided it is not in conflict with the LC terms

Chemical MSMEs to log robust growth, margins stressed: CRISIL SME Tracker

MSMEs' double-digit revenue growth will be powered by improved price realisation

'Unconfirmed LC binds only the issuing bank to pay'

In a freely negotiable LC, any bank can negotiate the LC compliant documents, pay the party and claim reimbursement in accordance with the instructions of the LC issuing bank.

'Commerce Ministry unaware EOUs are not bonded warehouses'

Apparently, the Commerce Ministry is not yet aware of these changes, and so, the SEZ Rules, 2006, remain unchanged.

Textile sector's growth to continue next fiscal as well: CRISIL SME Tracker

Margins will continue in the 10-12 per cent range in FY23 as well

'Return of advance to foreign buyer after 12 months requires RBI nod'

Therefore, please send a suitable request to RBI, through your bank, explaining the reasons for the failure to export and the delay in sending back the advance within one year.