Presentation given at ‘Seminar on India’ Conducted by Department of Export, Govt. of Thailand

1. TAX AND REGULATORY ENVIRONMENT IN INDIA by Rajeev K Chopra Presented at “Seminar on India” At Bangkok in February 2008 Organized by Department Of Export Promotion, Thailand

6. www.cbec.gov.in Customs CBEC Manual SL No. 22 DETAILS OF DUTY

12. SEZ’s (Special Economic Zones) Exports: Export performance of the SEZ are as given below:- 18309.00 13853.58 Total : 55.02 --- Indore SEZ 5.27 --- Jaipur SEZ 95.54 --- Manikanchan SEZ 1539.72 869.90 Surat SEZ 579.27 435.67 Visakhapatnam SEZ 569.15 825.34 Falta SEZ 462.99 298.91 Cochin SEZ 1376.91 1037.96 Madras SEZ 4266.00 1534.17 Noida SEZ 8298.59 7832.81 SEEPZ-SEZ 1060.14 1018.82 Kandla SEZ 2004-2005 (Rs. in crores) 2003-2004 (Rs. in crores) Zone

15. Sales Tax/VAT Tax implication under Value Added Tax Act *Note: CST Paid cannot be claimed for credit. CST is assumed to remain the same though it could to be reduced to 2% when VAT is introduced and eventually phased out. VAT can be considered as a multi-point sales tax with set-off for tax paid on purchases (inputs) and capital goods. What this means is that dealers can actually deduct the amount of tax paid by him for purchase from the tax collected on sales, thereby paying just the balance amount to the Government. CONSUMER IN BANGALORE SALE @ Rs. 134/- »» 'D' OF BANGALORE »» SALE @ Rs. 124/- »» 'C' OF BANGALORE »» SALE @ Rs. 114/- »» 'B' OF BANGALORE »» SALE 'A' OF CHENNAI @ Rs. 100/- »» 16.75 4.00 VAT CST Total to Govt. 1.25 15.50 16.75 150.75 12.5% VAT 134 Consumer D 1.25 14.25 15.50 139.50 12.5% VAT 124 D C 14.25 0* 14.25 128.25 12.5% VAT 114 C B 4.00 0 4 104 4% CST 100 B A Net Tax Outflow Tax Credit Tax Payable Invoice value (Incl Tax) Tax Rate Selling Price (Excluding Tax) Buyer Seller

22. Thank You!