CBEC
issues clarification on issues related to furnishing of Bond/Letter of
Undertaking (LUT) for exports pursuant to communications received from field
formations and exporters regarding interpretation of Notification and Circular
dated July 7, 2017 and Circular dated July 5, 2017; Clarifies that, only such
exporter who has received a remittance of Rs. 1 crore or 10% of export
turnover, whichever is higher, in previous financial year (FY) is eligible for
LUT facility, however, such condition is inapplicable to a status holder
specified in paragraphs 3.20 and 3.21 of Foreign Trade Policy 2015-2020; Bonds
shall be furnished on non-judicial stamp paper, while LUTs can be submitted on
letterhead containing signature and seal of person or authorized person, further,
LUT/bond being a priori requirement for export, including supplies to a SEZ
developer/SEZ unit, should be processed on top most priority and be accepted
within a period of 3 working days from date of submission along with complete
documents by exporter; CT-1 Form holds no relevance under GST since transaction
between manufacturer and merchant exporter is not exempted even on submission
of LUT/bond; Zero rating of exports, including supplies to SEZ, is
allowed only with respect to supply by actual exporter under LUT/bond or
payment of IGST, further, zero rating is inapplicable to EOU supplies as there
is no special dispensation for them; LUT acceptance instead of a bond for
supplies of goods to Nepal or Bhutan or SEZ developer or SEZ unit will be permissible
irrespective of whether payments is received in Indian currency or convertible
foreign exchange as long as same is in accordance with RBI guidelines, however,
supply of services to Nepal or Bhutan shall be deemed to be export of services
only if payment is received in convertible foreign exchange; Further, exporter
is at liberty to furnish bond/LUT before Central Tax Authority or State Tax
Authority till administrative mechanism for assigning taxpayers to respective
authority is implemented; Unless there is any evidence to the contrary,
documents submitted as proof of fulfilling LUT conditions shall be accepted and
self-declaration shall be accepted unless there is specific information
otherwise; Reiterates that instructions issued vide circular dated July
7 and this circular shall apply to all exports made on or after July 1,
2017: CBEC Circular
Subscribe to:
Post Comments (Atom)
Whether Pre-deposit can be made post filing of Appeal
Recently, the Hon’ble Punjab & Haryana High Court, in the case of Sumat Gupta & CO. v. UOI, 2024-VIL-416-P&H , held that pre-d...
-
LEASE-DEED (A brief Introduction) Lease defined. A lease of immovable property is a transfer of a right to enjoy such property, mad...
-
Particulars in Part 1 and Part 2 of Step-2 of registration form are required to be exactly the same as reported in the TDS statement. Plea...
-
· Mumbai ITAT in the case of Mukesh Harilal Mehta held that Exemption U/S 54 cannot be denied merely due to mistake by the developer.
-
This Tax Alert summarizes a recent instruction issued by the SEZ Division, Department of Commerce, clarifying various concerns relating t...
-
Earlier this year, the Mauritius Government approved the amendment to the India – Mauritius tax treaty, aligning it with the proposal of th...
-
Filing income tax returns (ITR) within the specified timelines under the Income-tax Act is not just a legal obligation but also crucial fo...
-
Slump sale is transfer of one or more business undertakings for a lump sum consideration, without assigning individual values to the each...
-
This Tax Alert summarizes a recent judgement of the Delhi High Court (HC) [1] dealing with the issue of denial of input tax credit (ITC) ...
-
1. Background 1.1 When a company aims to acquire another company's business through amalgamation or demerger, assets or ...
-
NECESSITY : Sometimes, in view of the expansion of the business, multiple increase in turnover and need for getting finances from the ...
No comments:
Post a Comment