Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Udyog Tax News Flash 13th Jan12

301 views

Published on

More on service tax e-refund

E-refund of service tax through customs EDI was made available to exporters as an option under notification 52/2011-ST dated 30 December 2011, as earlier reported in these columns.
The clarifications given by the CBEC on this issue under circular 149/18/2011 dated 16 December 2011 are also to be noted. The circular informs us that option to avail of the electronic route for service tax refund (under which refund is given at the rates specified in the notification) may be exercised by mentioning in the shipping bill the chapter / subheading number at the two digit or four digit level, as mentioned in the schedule of rates. This must correspond with the RITC code entered against the goods in the electronic shipping bill. If the exporter does not wish to exercise the option of e-refund, he must enter 9801 instead of the code for the goods. The circular further clarifies that the same bank account must be used for both drawback and service tax refunds.

  • Login to see the comments

  • Be the first to like this

Udyog Tax News Flash 13th Jan12

  1. 1. UDYOG TAX NEWS FLASH 13TH JANUARY 2012Update 13 January 2012Service tax return e-filing – last date extended again, to 20 JanThe CBEC has further extended the last date for filing half-yearly service tax return for the periodApril-September 2011, to 20 January 2012. In order no.1/2012 issued for this purpose, it has referred todifficulties that assessees continue to face with the e-filing process. The order can be seen athttp://www.servicetax.gov.in/notifications/notfns-2012/st-odr01-09jan12.htm..But these difficulties in e-filing are nothing new. So,why was e-filing hurriedly made compulsory, withoutfirst fixing the glitches?More on service tax e-refundE-refund of service tax through customs EDI was madeavailable to exporters as an option under notification iTAX is combo of52/2011-ST dated 30 December 2011, as earlierreported in these columns.The clarifications given by the CBEC on this issue Indirect Taxation Forunder circular 149/18/2011 dated 16 December 2011 arealso to be noted. The circular informs us that option to Gobal & Local ERP’savail of the electronic route for service tax refund (underwhich refund is given at the rates specified in the vendors or customersnotification) may be exercised by mentioning in theshipping bill the chapter / subheading number at the two who desire a localdigit or four digit level, as mentioned in the schedule ofrates. This must correspond with the RITC code enteredagainst the goods in the electronic shipping bill. If the taxation modules forexporter does not wish to exercise the option of e-refund, he must enter 9801 instead of the code for the their ERPsgoods. The circular further clarifies that the same bankaccount must be used for both drawback and service taxrefunds.It may be recalled that the rates specified for service tax refund by the electronic route aresubstantially lower than the actuals. Refund of actual service tax paid on specified input services canstill be availed, by application to the jurisdictional Assistant or Deputy Commissioner with therelevant documents.The circular can be seen at http://www.servicetax.gov.in/circular/st-circular11/st-circ-149-2k11.htm. Udyog Software (India) Ltd (www.udyogsoftware.com) Phone: 022-67993535, Email: sales@udyogsoftware.comThe information contained herein is of a general nature and is not intended to address the circumstances of any particular individualor entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information isaccurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such informationwithout appropriate professional advice after a thorough examination of the particular situation. Page 1
  2. 2. Customs payments for any station using ICEGATE, through authorized banksThe CBEC has issued a list of 17 authorised banks (different for different locations) through whichcustoms duty can be paid through the ICEGATE portal, for any customs station. Alongwithelectronic filings and self-assessment, this is a facilitation measure for importers. The list can bedownloaded from http://cbec.gov.in/cs-nom-banks.htm.Customs: Tariff value of brass scrap & poppy seeds changedCustoms duty on certain products is assessed on the basis of a notified value rather than transactionvalue. This „tariff value‟ is notified in terms of section 14(2) of the Customs Act 1962. The latestnotification in this regard, 2/2012-Customs (NT) dated 13January 2012, notifies changes in the tariff value of brassscrap (all grades now USD 4017 per MT) and poppy seeds(now USD 1970 per MT). The notification can be seen athttp://cbec.gov.in/customs/cs-act/notifications/notfns-2012/cs-nt2012/csnt02-2012.htm.Anti-dumping duty notificationsThe government has notified › continuance of anti-dumping duty, now @ USD 2.69 per kilogram on saccharin imported from China. [Notification 7/2012-Customs(ADD) dated 13 January 2012] › continuance of anti-dumping duty, now @ USD 1.95 per kilogram on cellophane transparent film produced in or exported from China [notification 5/2012-Customs (ADD) dated 13 January 2012] › imposition of anti-dumping duty on phosphoric acid (all grades except agricultural grade) at different rates for different exporters from Israel and Taiwan.[notification 4/2012-Customs (ADD) dated 13 January 2012] › continuance of anti-dumping duty, at the rates notified, on nylon filament yarn (excluding high tenacity yarn of nylon and fishnet yarn of nylon) imported from or produced in China, Korea, Malaysia, Thailand, Chinese Taipei, or Indonesia. [notification 3/2012-Customs (ADD) dated 13 January 2012] › continuance of anti-dumping duty, at the rates notified, on silk fabrics 20-100 grams per metre, imported from or produced in China. [notification 2/2012-Customs (ADD) dated 13 January 2012] Udyog Software (India) Ltd (www.udyogsoftware.com) Phone: 022-67993535, Email: sales@udyogsoftware.comThe information contained herein is of a general nature and is not intended to address the circumstances of any particular individualor entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information isaccurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such informationwithout appropriate professional advice after a thorough examination of the particular situation. Page 2
  3. 3. Nepal exports: excise proceduresThe changes in treatment of exports to Nepal had been earlier highlighted in these columns. Thechanges are effective from 1 March 2012. Now the government has issued a circular 958/1/2012dated 13 January 2012, on the subject, which can be viewed at http://cbec.gov.in/excise/cx-circulars/cx-circ12/958-2012cx.htm. The circular elucidates, with reference to the new notifications,that pursuant to the revised treaty of trade between India and Nepal, exports to Nepal have been puton par with exports to other countries. (Now only Bhutan is treated differently.)List of documents to be filed with refund claimsThe CBEC has helpfully provided, on its website, a list of documents that must be filed with refundclaims in excise, customs and service tax. See http://cbec.gov.in/refund-rebate/refundrebate-docs.pdf.Education cess on reversal amount under Rule 6 of Cenvat Credit Rules?Where a manufacturer produces both exempted and dutiable goods and is unable to segregate theinputs to limit the credit, the rules allow him to reverse the credit later, after the close of the month.(Rule 6(3) of the Cenvat Credit Rules.)Now some “smart” officers in the field are demanding education cesses on the amount of reversal.They say that the amount debited to Cenvat credit is a duty, because such a debit is not mentioned inthe list in Rule 3 of the other uses to which Cenvat credit may be put. Visit www.udyogsoftware.com Call us on 9320124365 or 022-67993535 Update Written By Radha Arun, Consultant To Udyog Software ( India) Ltd Udyog Software (India) Ltd (www.udyogsoftware.com) Phone: 022-67993535, Email: sales@udyogsoftware.comThe information contained herein is of a general nature and is not intended to address the circumstances of any particular individualor entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information isaccurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such informationwithout appropriate professional advice after a thorough examination of the particular situation. Page 3

×