Page 3 - Sme Chatroom

Exporters claiming higher drawback must submit self-declaration

For all exports made with effect from July 1, 2017 for which higher rate of drawback is claimed, exporters have to submit the self-declaration in the format given in CBEC Circular no.32/2017-Cus dated

For EOUs, wastage as per SION or 2%; else, norms must be fixed

For items having no SION, consumption of inputs shall be allowed subject to generation of waste, scrap and remnants up to two per cent of the input quantity

SME Chatroom: In case of inter-state supply, supplier should charge IGST

The e-way bill provisions have been deferred for now but as the law stands now, you are the recipient of goods but not the consignee

Inter-state supplies of up to Rs 20 lakh allowed without GST registration

A person can purchase the goods on payment of GST, export the goods either without payment of IGST under letter of undertaking or on payment of IGST under claim of refund

'IGST on high-seas sale of imports is levied only during customs clearance'

Value addition in each high-seas sale to form part of value on which IGST is collected at clearance

'Goods imported or locally procured by EOUs are not exempt from GST'

Presently, there is no exemption of GST on goods imported or procured from local sources by EOUs

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The facility for trading units under the EOU scheme was withdrawn in 2002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