Important IDT Notifications & Circulars as on September 16, 2016

Trade Notice: FTP:

Guidelines for Issuance of Duty Credit Scrips under Incremental Export Incentivisation Scheme (IEIS) for Quarterly period (January 1, 2013 to March 31, 2013)

The Incremental Export Incentivisation Scheme (IEIS) for Quarterly basis (January 1, 2013 to March 31, 2013) was introduced vide Notification No. 27 dated December 28, 2012. Under this scheme, an IEC holder was entitled for duty credit scrip @2% on the incremental growth during the period January 1, 2013 to March 31, 2013 compared to the period from January 1, 2012 to March 31, 2012 on the FOB value of export subject to conditions prescribed therein.

In pursuance of the Trade Notice No. 4 dated May 5, 2016, changes in entitlement in the online system for the IEIS Quarterly cases has been incorporated and list of such cases where Supplementary Scrip is to be issued is made available in the Online Application Menu of the Quarterly IEIS Scheme.

All the concerned RAs now have facility to re-open the files in such cases for issue of the balance claim pending after deducting the initial Scrip value and process such cases for issuance of Scrips for the balance entitlement after ensuring due diligence as indicated in the Trade Notice 4/2016 dated May 5, 2016 and earlier instructions on scrutiny of claims.

Now, the Directorate General of Foreign Trade vide Trade Notice No. 16/2016 dated September 14, 2016 instructs that RAs shall exercise due diligence while processing such claims by following guidelines of greater scrutiny as prescribed in Public Notice No. 28 dated September 25, 2013 to check claims having high growth percentage and/or value and against irregularities if any. Where the export growth or total claim under the Scheme is excessive and out of trend, RA would check claims in detail, including where necessary by seeking help from Customs, DRI etc.

In this regard Notification No.27 dated December 28, 2012 may also be carefully seen, in addition to other relevant FTP/HBP provisions, Inter alia, transfer of export performance from any other IEC holder is not permitted under the scheme as per Para 3.14.4(d) of FTP- 2009-14. Similarly disclaimer provision of Para 3.17.10(b) of FTP- 2009-14 is also not admissible as per Para 3.14.4(e) of FTP- 2009-14. Therefore, applicants who have purchased goods from another legal entity who is also having IEC are not entitled for benefit under the Scheme on such purchases of goods. More generally, no right is vested in cases where irregularities have been resorted to by applicants.

The RAs are also informed that applicant firms who have given reduced export performance details once at any time will not be given any benefit of re-applying with changed export performance.

Read more at: http://dgft.gov.in/Exim/2000/TN/TN16/TN1616.pdf

Circular: FTP:

Issuance of Free Sale & Commerce Certificate to Merchant Exporters

The Directorate General of Foreign Trade vide Policy Circular No. 02/2015-20 dated September 15, 2016 informs that Para 2.37 of Hand Book of Procedure, 2015-2020 deals with the issue of Free Sale & Commerce Certificate by Regional Authorities to exporters / merchants and in this regard clarifies that the exporter has to indicate the details of the manufacturer or the exporter (if he himself is not the manufacturer) in Annexure “A” of the Free Sale & Commerce Certificate. Thereon the Regional Authority concerned will indicate the name of the manufacturer exporter as is being submitted by the Applicant in Annexure “B”. Thus, free Sale & commerce certificate can be issued to Merchant Exporters also if they provide details of manufacturer of the item in Annexure “A” of Appendix 2H.

Notification: Goa VAT:

The Goa Value Added Tax (Ninth Amendment) Act, 2016

The Goa Government vide Notification No. 7/15/2016-LA dated September 12, 2016 has published the Goa Value Added Tax (Ninth Amendment) Act, 2016 to amend the Goa Value Added Tax Act, 2005 (“the GVAT Act”). The amendments made in the GVAT Act are as follows-

A. Amendment of section 3 (dealing with incidence of tax) of the GVAT Act –

In section 3(4) of the GVAT Act-

Substitution of “Rs. 5,00,000/-” for the letters and figures “Rs. 1,00,000/-” in clause (ii)
Substitution of “Rs. 10,00,000/-” for the letters and figures “Rs. 5,00,000/-” in clause (iii).

Thus, the amended section 3(4) will be as follows-

“(4) For the purposes of this section, the limits of turnover shall be as follows-

(i) Limit of turnover of Rs. 10000/- In case of Non-resident dealer and casual trader

(ii) Limit of turnover of Rs. 5,00,000/- In case of importer/manufacturer.

(iii) Limit of turnover of Rs. 10,00,000/- In any other case”

B. Amendment of section 10 (dealing with Input tax credit exceeding tax liability) of the GVAT Act-

Substitution of section 10(2) of the GVAT Act, namely:-

“(2) After adjustment under sub-section (1), the excess input tax credit of a registered dealer other than those covered under sub-section (3), shall be carried over as an input tax credit to the subsequent period upto the end of the respective financial year and if there is any unadjusted input tax credit thereof, the same shall be refunded in the prescribed manner within a period of three months from the date of filing of the last quarterly return of the respective financial year or from the date of filing an application by the dealer claiming such refund, whichever is later.

(2A) Any dealer, who has applied for carry forward of excess input tax credit after coming into force of the Goa Value Added Tax (Sixth Amendment) Act, 2012 and has been allowed to carry forward the same by an order in writing, may instead of availing the benefit of carry forward, claim refund of the amount allowed to be carried forward under sub-section (2) by making an application within six months from the date of coming into force of the Goa Value Added Tax (Ninth Amendment) Act, 2016.

(2B) The dealer who has not applied for carry forward of excess input tax credit after coming into force of the Goa Value Added Tax (Sixth Amendment) Act, 2012, he also may claim refund under sub-section (2) by making an application within six months from the date of coming into force of the Goa Value Added Tax (Ninth Amendment) Act, 2016 and he shall be assessed for the respective financial year and the amount of the excess input tax credit as may be determined in the assessment shall be allowed to be refunded to him.

(2C) The dealer who is claiming excess input tax credit at the end of financial year but does not apply for refund, he shall be assessed for the respective financial year and such amount of the excess input tax credit as may be determined in the said assessment shall be allowed to be carried forward.”

C. Amendment of section 35 (dealing with Appeals) of the GVAT Act-

Substitution of section 35(4) of the GVAT Act, namely:-

“(4) No appeal under sub-section (2) shall be entertained by the Appellate Authority, unless such appeal is accompanied by a satisfactory proof of the payment of whole of the undisputed amount of tax, interest and penalty and ten percent of the disputed amount of tax, interest and penalty, that may be due:

(4A) The provisions of sub-section (4) shall be applicable also to any appeal pending before the Appellate Authority on the date of coming into force of the Goa Value Added Tax (Ninth Amendment) Act, 2016 and the appellant shall make payment as aforesaid within a period of 120 days from such commencement, failing which, such appeal shall stand abated.”

2.The Goa (Recovery of Arrears of Tax through Settlement) (Amendment) Act, 2016

The Goa Government vide Notification No. 7/16/2016-LA dated September 9, 2016 has published the Goa (Recovery of Arrears of Tax through Settlement) (Amendment) Act, 2016 to amend the Goa (Recovery of Arrears of Tax through Settlement) Act, 2009 (“the Goa recovery of arrears Act”). The amendments made in the Goa recovery of arrears Act are as follows-

A. Amendment of long title.-

In the Goa recovery of arrears Act in the long title,-

Substitution of “31st day of March, 2015” for the expression “31st of March, 2005”.

(ii) Substitution of “Value Added Tax Law, Entertainment Tax Law, Luxury Tax Law and Entry Tax Law” for the expression “Luxury Tax Law and Entry Tax Law”.

B. Amendment of Section 2 (definitions) of the Goa recovery of arrears Act –

In Section 2 of the Goa recovery of arrears Act–

Substitution of “hotelier or proprietor” for the word “hotelier” in clause (a)
Substitution of Clause (b) i.e. arrears of tax, penalty and interest
Substitution of “Goa Sales Tax Act, 1964 (Act 4 of 1964) or the Goa Value Added Tax Act, 2005 (Goa Act 9 of 2005)” for the expression “Goa Sales Tax Act, 1964 (Act 4 of 1964)” in clause (d)
Insertion of clause (ee) i.e. “Form” after clause (e)
Insertion of clause (hh) i.e. “proprietor” after clause (h)
Substitution of clause (i) i.e. “relevant Act”
Substitution of “31st day of March, 2015” for the expression “the financial year ending on 31st day of March, 2005” in clause (j).

C. Substitution of section 4 (dealing with Eligibility for settlement) of the Goa recovery of arrears Act, namely-

“4 Eligibility for settlement.–

Subject to the other provisions of this Act, an applicant shall be eligible to make an application for settlement of his arrears of assessed tax, interest or penalty for the specified period in respect of which dispute is raised before an authority including the appellate authority or Court on or before the 31st day of March, 2016:

Provided that no application for settlement shall be entertained if the appellate or revisional authority or Court has remanded the case back to the assessing authority for fresh assessment and such assessment has not been completed as on 31st day of March, 2015:

Provided further that the cases already decided or settled before the commencement of the Goa (Recovery of Arrears of Tax through Settlement) (Amendment) Act, 2016, shall not be taken up.”

D. Amendment of section 5 (dealing with Application by the applicant) of the Goa recovery of arrears Act –

(i) Substitution of “in Form I hereto before expiry of three months, from the date of coming into force of the Goa (Recovery of Arrears of Tax through Settlement) (Amendment) Act, 2016” for the expression “in the Form specified in Part A of the Schedule hereto before expiry of three months, from the date of coming into force of this Act” in sub-section (1).

(ii) Insertion of sub- section (1A) and (1B) after sub-section (1).

E Amendment of section 6(dealing with determination of amount payable for settlement of arrears) of the Goa recovery of arrears Act –

Substitution of Section 6(2), namely:-

“(2) After the amount payable by the applicant is determined under sub-section (1) by the designated authority, the designated authority shall inform the same to the applicant in Form II hereto. The applicant shall pay the amount by using e-challan within twenty days from the date of receipt of the intimation and submit a self-attested photocopy of such challan to the designated authority:

Provided that an applicant being a dealer, whose appeal is pending before the tribunal as on the 31st day of March, 2016 and who has paid fifty percent of the disputed amount of tax, interest and penalty in accordance with sub-section (2) of section 36 of the Goa Value Added Tax Act, 2005 (Goa Act 9 of 2005), shall pay the balance amount, if any, by using e-challan and submit to the designated authority a self-attested photocopy of such challan in proof of payment of the amount as determined and intimated by the designated authority in Form II:

Provided further that, where the designated authority is satisfied that the applicant being a dealer, whose appeal is pending before the tribunal as on the 31st day of March, 2016, has paid fifty per cent of the disputed amount of tax, interest and penalty in accordance with sub-section (2) of section 36 of the Goa Value Added Tax Act, 2005 (Goa Act 9 of 2005) and that there is no further amount payable for the purpose of settlement at the rates specified in section 7, he shall issue a certificate of settlement in Form III hereto to the applicant and thereupon, such applicant shall be discharged from his liability to make payment of the balance amount of arrears of tax, interest and penalty to which he was liable before settlement.

F. Substitution of section 7 (dealing with Rate applicable in determining the amount payable) of the Goa recovery of arrears Act, namely –

“7 Rate applicable in determining the amount payable.- Where the arrears of tax, interest and penalty have arisen on account of any order of assessment relating to the specified period which is disputed either in review or in appeal or in revision or in any other suit or in Writ Petition filed before any Court of Law, on or before the 31st day of March, 2016, such arrears shall be settled at the rate of 50% of the disputed amount.”

G .Amendment of section 8 (dealing with settlement of arrears and issue of certificate of settlement) of the Goa recovery of arrears Act –

Substitution of “in Form III” for the expression “in form as specified in Part C of the Schedule” in section 8(1).

H. Substitution of Schedule.–

For the existing Schedule of the Goa recovery of arrears Act, the following forms shall be substituted, namely:-

FORM I i.e. Application for Settlement
FORM II i.e. Intimation to the applicant by the designated authority
FORM III i.e. Certificate of settlement issued by the designated authority

Notification: Uttarakhand VAT/CST:

Exemption of Mobile handsets from payment of tax by a manufacturer against C Form

The Uttarakhand Government vide Notification No. 706/2016/74(120)/XXVII(8)/2005 dated September 12, 2016 has informed that with effect from April 1, 2015, no tax shall be payable under section 8(1) of the Central Sales Tax Act, 1956, by any manufacturer registered under the Uttarakhand Value Added Tax Act, 2005 and the Central Sales Tax Act, 1956, having his place of business in Uttarakhand, in respect of the sales made by him after manufacturing, from any such place of business in the course of inter-state trade or commerce of Mobile Handsets, subject to the conditions and restrictions referred to in section 8(5) of the said Act and on furnishing the declaration in Form “C”, for a period upto March 31, 2017 or the date of implementation of GST, whichever is earlier.

Important IDT Notifications & Circulars as on September 16, 2016

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Important IDT Notifications & Circulars as on September 16, 2016

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