With three prominent film personalities already under the scanner for service tax evasion, the department has proclaimed that they are going to be much more stringent about these tax laws. Sunny Deol is already on the verge of an arrest considering the fact that the actor turned producer has a payment of Rs. 20 lakh due to the Service Tax Department and the department will send a show-cause in the next two days. |
Monday 9 September 2013
Service Tax Dept. gets stringent for Bollywood
Capital transaction with AEs can be included for calculation of RPT only on basis of functions perfo
Continuance of proceedings by ICAI against CA after settlement of matter before CLB is vicious
India Looks To Lower Dollar Outflow On Oil Via Bilateral ` Deals
9-Sep-2013
With Prime Minister Manmohan Singh underlining the need to reduce the oil import bill by at least $25 billion (about `1.63 lakh crore) in the current financial year to contain the current account deficit (CAD), India is exploring opportunities for bilateral currency swap agreements with oil-producing countries that could include Iraq and the UAE.
The move would enable India to pay in rupees for oil imported from other economies. Besides, it would also reduce India’s widening CAD — the difference between inflows and outflows of dollars and make the rupee internationally more acceptable and tradable.
India pays Iran rupees for oil imports. Under a plan to pay Iran in rupees and increase oil imports by 2 million tonnes per annum, India expects to save close to $8 billion (about `52,192 crore) from Iran alone. Kuwait and Iraq are two other countries that India is talking too on the same lines.
Besides, oil-producing countries, it is set to have more such deals with other economies as well.
The commerce and industry ministry has already set up a taskforce to work out details of such agreements.
With an imminent war-like situation in Syria, global oil prices could further skyrocket.
“There is an increasing trend among countries to institute bilateral currency swap agreements for trade purposes. The Central Bank of China has so far singed 20 such agreements where the yuan is currency of settlement,” Soumya Kanti Ghosh, chief economic adviser, State Bank of India, said.
Source:- hindustantimes.com
Russia Lifts Ban On Import Of Rice, Peanuts From India
9-Sep-2013
NEW DELHI: Russia has lifted an eight-month-old ban on the import of Indian rice and peanuts, effective from this month, a move that would help traders regain their lost market.
The Russian Federation had imposed the ban due to the presence of khapra beetles pest in rice and aflatoxin contamination of peanuts.
"Russia has cancelled the temporary restriction on import of rice, rice cereals and peanuts from India. Exporters can resume export of these products effective from September 1," a senior government official told PTI.
Russia decided to remove restrictions after its officials visited processing units in India in June. The delegation was convinced about the safety measures that were put in place here while processing these food items, the official said.
The resumption of trade comes as the country seeks to boost exports to address the current account deficit.
India, the world's second-biggest producer of rice, had shipped 61,000 tonnes of rice and 3,700 tonnes of peanuts in the last financial year, earning USD 31 million from the export of the two food items.
Source:- economictimes.indiatimes.com
Brazil, India Offer Cotton Price Bulls Little Joy
9-Sep-2013
US farm officials gave hope to investors downbeat on cotton prices, hiking forecasts for India's harvest and, for Brazil, flagging a slump in forward sales by growers and a limited boost to demand from soccer's World Cup.
US Department of Agriculture foreign staff raised to a record 29.0m bales their forecast for India's harvest in 2013-14, citing "adequate" sunshine following strong monsoon rains, conditions "which point to food yield prospects".
"Recent field travel to Andhra Pradesh and Gujarat and a phone survey of contacts in other states point to considerable optimism concerning the upcoming harvest," the USDA's New Delhi bureau said.
The production estimate is 1.0m bales higher than the official forecast from the USDA, which will on Thursday update its world supply and demand numbers on a range of crops in its monthly Wasde report, and represents a 9.4% increase year on year.
And it will support exports of 7.0m tonnes, above the official USDA number of 6.25m tonnes, with the strong supplies, an absence of government intervention and currency weakness boosting prospects.
While Indian supplies are currently some 4 US dollar cents a pound above the Cotlook A index of physical prices, "presumably, the onset of harvest will push Indian cotton lower and a weaker rupee will eventually make Indian cotton an attractive option", the bureau said.
Reluctant to hedge ahead
In Brazil, the USDA's Brasilia office offered some succour to cotton bulls, estimating that cotton exports will halve to 2.1m bales in 2013-14, below the official USDA forecast of 2.6m bales.
The estimate reflected ideas of a significant hangover from a weak harvest in 2012-13, when output tumbled by one-third as "farmers exited cotton production, dismayed with the high capital costs, level of risk, and stringent management practices".
However, output is expected to rebound some 24% in 2013-14, reflecting a recovery in sowings and the greater use of seed resistant to the Helicoverpa zea corn earworm moth caterpillar, which has become a major pest in cotton and soybeans as well as corn.
The office also flagged weak forward sales by farmers of the next harvest, with 14% of the crop hedged so far, a little under half the 30% of the crop typically sold by now, reflecting a rise in local prices.
Local prices, while falling late in August, increased 3.4% overall last month, protected by the weak real, according to research centre Cepea.
World Cup impact
Meanwhile, on demand, the USDA's Brasilia staff downplayed hopes that the 2014 football World Cup, being held in Brazil, would spark rising domestic demand for cotton through boosting purchases of replica shirts and soccer-based clothing.
"Across-the-board inflation has weakened consumer's domestic purchasing power and reduced disposable income available for apparel purchases, particularly in the lower and middle classes," the staff said.
"Significant World Cup sales are expected in 2014. But these sales are expected to offset the minor slide in consumption instead of increasing consumption."
Source:- agrimoney.com
Onion Exports Drop By 81% In August After Curbs On Sale
9-Sep-2013
NEW DELHI: India's onion exports fell sharply by 81 per cent to 29,247 tonnes in August as compared to same period a year ago, after the government imposed curbs on the overseas sale to improve domestic supply and check prices.
On August 14, the government had imposed a minimum onion export price of $ 650 per tonne to restrict shipments and control prices after it touched Rs 80 per kg in retail markets on supply crunch. The retail price of onion continues to rule at Rs 50-60 per kg in most parts of the country.
According to the data maintained by the cooperative Nafed, onion exports declined to 29,247 tonnes in August this year from 1,56,283 tonnes in the same month last year.
In value terms too, shipments dropped to Rs 125.46 crore from Rs 164.92 crore in the review period.
During the April-August period of this fiscal, onion exports fell to 6,97,028 tonnes as against 8,50,634 tonnes in the year-ago period. However, in value terms, the outbound shipments rose sharply to Rs 1,341 crore from Rs 844 crore in the said period.
According to traders, exports in the coming weeks would depend on the supply situation. The supply of onion is limited during the lean period of July-October, as 60 per cent of produce is grown during the rabi season of March-June.
The rest is produced during the Kharif season of October-- December and late Kharif season of January--March period.
India, the second largest producer of onion in the world after China, is estimated to have harvested 166 lakh tonnes of the staple vegetable last year. The country had earned Rs 2,294 crore from the export of 18.22 lakh tonnes of onion in FY 2012-13.
Source:- economictimes.indiatimes.com
Rupee Jumps To 64.30 Per Dollar, Sensex Soars 400 Points
The Indian rupee jumped around 1.5 per cent against the US dollar to pull back below the key 64.50 levels on Tuesday, triggering sharp gains in the stock markets. The partially convertible rupee is now on track for its fourth straight day of gains after snapping a three-week losing streak.
As of 09.16 a.m., the rupee traded at 64.33, up 1.4 per cent against Friday's close at 65.24 per dollar. Markets were closed on Monday on account of Ganesh Chaturthi.
The rupee is now trading at a two-week high. A surge in exports also helped sentiments.
India's merchandise exports posted double-digit growth in the month of August, while imports were "contained", trade secretary S. R. Rao said on Monday, offering some respite for the troubled rupee. Official data is due later this week.
The rupee tracked higher euro, which gained against the dollar after disappointing US jobs data raised hopes that the Fed Reserve may be hesitant to announce tapering of stimulus as early as next week.
Sentiment in the currency has improved since Reserve Bank of India governor Raghuram Rajan unveiled a slew of proposals to support the rupee and open up markets on Wednesday, providing a breath of fresh air for investors unnerved by the country's worst economic crisis in two decades.
The RBI has so far been the main line of defence against the rupee.
Stock markets are also on track for the fourth consecutive day of gains. The BSE Sensex, which has gained over 1,000 points in the previous three sessions, rose another 400 points in early trade today. The broader Nifty scaled above the key 5,800 levels on the back of strong gains in banking stocks.
Mayruesh Joshi of Angel Broking told NDTV that steps taken by Raghuram Rajan are not only aiding the Indian rupee, but also leading to a huge momentum in the Bank Nifty.
Source:- profit.ndtv.com
Gold Tumbles By Rs 625 On Sluggish Demand, Global Cues
9-Sep-2013
NEW DELHI: Gold prices tumbled by Rs 625 to Rs 31,100 per ten grams here on Monday on sluggish demand at prevailing higher levels amid a weak global trend.
However, silver held steady at Rs 54,300 per kg in scattered buying from industrial units and coin makers.
Traders said sluggish demand at prevailing higher levels amid a weak global trend on speculation Federal Reserve policy makers will reduce monthly debt purchases this month, mainly pulled down gold prices.
Gold in London, which normally set price trend on the domestic front, fell 0.3 per cent to USD 1,387.24 an ounce and silver by 0.3 per cent to USD 23.78 an ounce.
On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs 625 each to Rs 31,100 and Rs 30,900 per ten ten grams, respectively. It had gained Rs 725 in the previous session. Sovereign held steady at Rs 25,200 per piece of eight gram.
On the other hand, silver ready ruled steady at Rs 54,300 per kg while weekly-based delivery shed Rs 35 at Rs 54,895 per kg. Silver coins continued to be asked around previous level of Rs 88,000 for buying and Rs 89,000 for selling of 100 pieces.
Source:- timesofindia.indiatimes.com
[Indian Custom Order] : Appointment of Common Adjudicating Authority
F.No.437/51/2013-Cus-IV
Government of India
Ministry of Finance
(Department of Revenue)
Central Board Excise & Customs
*****
North Block New Delhi,
Dated 5th September, 2013
ORDER
In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F.No.DRI/SRU/INV-3/2012 dated 23.04.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Ahmedabad in the case of M/s Purab Textiles Pvt. Ltd. (IEC No.527021907), Neeta Estate, Near Zenith Mill, Vasta Devdi Road, Katargam, Surat and Jay Laxmi Fabrics, (IEC No.5290559952), 7/1164, Ruwala Compound, Juna Balashram, Rampura Tunki, Surat to the Commissioner of Customs (Port-Import) Jawaharlal Nehru Custom House, Nhava-Sheva, Post Uran, District Raigad, Maharashtra-400707 for the purpose of adjudication
(M.V. Vasudevan)
Under Secretary to the Government of India
Copy to:-
1. The Additional Director General, DRI, Ahmedabad Zonal Unit, Ahmedabad.
2. The Commissioner of Customs (Import), JNCH, Nhava Sheva, Post-Uran, Distt-
Raigad, Maharashtra - 400707.
3. The Joint/Additional Commissioner of Customs (Imports), JNCH, Nhava Sheva,
Post-Uran, Distt-Raigad, Maharashtra-400707.
4 The Joint/Additional Commissioner of Customs (Preventive), Sarda House, Bedi
Bandar Road, Opposite Panchavati, Jamnagar-361002.
5. The Joint/Additional Commissioner of Customs (Imports), Air Cargo Complex,
Sahar,Andheri (E), Mumbai-400099.
6. Webmaster.cbec@icegate.gov.in
F.No.437/53/2013-Cus-IV
Government of India
Ministry of Finance
(Department of Revenue)
Central Board Excise & Customs
*****
North Block New Delhi,
Dated 5th September, 2013
ORDER
In terms Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F.No.VIII/26/50/2013-DRI dated 09.05.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Chennai Zonal Unit, Chennai in the case of M/s Devendran Coal International Pvt. Limited, 2A & B, III floor, Raja Annamalai Building, No.19, Marshalls Road, Egmore, Chennai-600008 to the Commissioner of Customs, New Harbour Estate, Turicorin for the purpose of adjudication.
(M.V. Vasudevan)
Under Secretary to the Government of India
Copy to:-
1. The Additional Director General, Directorate of Revenue Intelligence, Chennai Zonal Unit, Chennai.
2. The Commissioner of Customs (Seaport-Import), Customs House, Chennai.
3. The Commissioner of Customs, No.1, Williams Road, Tirchirpalli-620001 .
4. The Commissioner of Customs , Custom House, New Harbour Estate, Tuticorin 628004.
5. Webmaster.cbec@icegate.gov.in
F.No.437/54/2013-Cus-IV
Government of India
Ministry of Finance
(Department of Revenue)
Central Board Excise & Customs
*****
North Block New Delhi,
Dated 5th September, 2013
ORDER
In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice F.No.DRI/AZU/INQ-1/2013 dated 27.06.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Zonal Unit, Ahmedabad in the case of M/s VVF(India) Limited, (formerly known as VVF Ltd., Mumbai), 109, Opposite Sion Fort Garden, Sion East, Mumbai-400022 to the Commissioner of Customs, Custom House, Kandla for the purpose of adjudication.
(M.V. Vasudevan)
Under Secretary to the Government of India
Copy to:-
1. The Additional Director General, DRI, Ahmedabad Zonal Unit, Ahmedabad.
2. The Commissioner of Customs, Custom House, Kandla.
3. The Commissioner of Customs (Import), NCH, Mumbai.
4. Webmaster.cbec@icegate.gov.in
F.No.437/26/2013-Cus-IV
Government of India
Ministry of Finance
(Department of Revenue)
Central Board Excise & Customs
*****
North Block New Delhi,
Dated 5th September, 2013
ORDER
In terms of Notification No.15/2002-Customs (N.T.) dated 07.03.2002 ( as amended) issued under sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Board hereby assigns the Show Cause Notice DRI F.No.64/KOL/APP/2011/158 dated 11.01.2013 issued by Additional Director General, Directorate of Revenue Intelligence, Kolkata Zonal Unit, Kolkata in the case of M/s C & C Construction Ltd, Plot No. 70, Institutional Sector, Gurgaon-122001 to the Commissioner of Customs (Port), Kolkata for the purpose of adjudication.
(M.V. Vasudevan)
Under Secretary to the Government of India
Copy to:-
1. The Additional Director General, DRI, Kolkata Zonal Unit, 8, Ho Chi-Minh Sarani,
Kolkata-700071.
2 The Commissioner of Customs (Port), Kolkata, 15/1 Strand Road, Custom House,
Kolkata-700001.
3. The Commissioner of Custom (Export), Mumbai, New Custom House, Mumbai.
4. Webmaster.cbec@icegate.gov.in
Courts can only give directions for working of scheme, it can't rewrite terms of scheme
Cos providing engineering services can't be compared with cos providing marketing services for TP st
No penalty for accepting cash loan through cheque discounting facility to handle urgent business nee
No waiver of penalty if ST was collected but not deposited by assessee
Service charges from operation of water plant eligible for sec. 80-I even if plant wasn't owned by a
Additions merely on basis of valuation report not sustainable unless supported by rejection of books
Interest income to be allowed as revenue exp. or bad-debt on its subsequent waiver
Company can decide to extend financial year at any time either during the year or after its end
Sec. 80-IC relief allowed in past years couldn't be disallowed in relevant year in absence of advers
Cost incurred by hotels in providing meals to its employees at concessional rates couldn't be charge
DGFT Public Notice No.24/(RE 2013)/2009-14 dated 06-09-2013
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
PUBLIC NOTICE No. 25 (RE-2013)/ 2009-2014
NEW DELHI, DATED THE 6th September, 2013
Subject: Relaxation of condition for fulfillment of export obligation in respect of consignments of gold articles.
In exercise of powers conferred under Paragraph 2.4 the Foreign Trade Policy, 2009-2014, the Director General of Foreign Trade hereby relaxes certain conditions of para 4A.8 of HBP v1 for the purpose of import/release of 20% gold consignment (under customs bond) against export of gold jewellery/articles of gold.
- Para 4A.8(a) stipulates what may constitute “Proof of Export” and lists three specific documents as under:
(i) E.P. copy of the shipping bill;
(ii) Customs attested invoice;
(iii) Bank certificate of realisation in Appendix 22A
- Only in respect of export of gold jewellery and export of articles of gold, the document listed at (iii) above, namely “Bank certificate of realisation in Appendix 22A” will not be insisted upon so far as “proof of exports” is required as per RBI Circular No.25 dated 14.08.2013 or any other related guidelines issued by RBI or Ministry of Finance.
- It is reiterated that in respect of all other exports, all the 3 documents listed above will continue to be required for establishment of proof of export. Similarly against export of gold jewellery and export of articles of gold, if any claim of export benefit like drawback, etc., is considered then Bank certificate of realisation in Appendix 22A would be required.
Effect of this Public Notice: The exporters/importers can import/get their 20% gold consignment (under customs bond) released without waiting for the realization, if the other two requirements of para 4A.8(a) are satisfied.
(Anup K. Pujari)
Director General of Foreign Trade
e-mail: dgft@nic.in
(Issued from F. No. 01/94/180/88/AM11/PC-4)
Customs Circular No 35/2013 dated 05-09-2013
Government of India
Ministry of Finance, Department of Revenue
Central Board of Excise & Customs
Drawback Division
Circular No. 35/2013-Customs
New Delhi, dated the 5th September, 2013
To
All Chief Commissioners of Customs / Customs (Prev),
All Chief Commissioners of Customs & Central Excise,
All Directors General of CBEC / Chief Commissioner (AR), CESTAT
All Commissioners of Customs / Customs (Prev)/ Customs & Central Excise
All Commissioners of Customs (Appeals)/ Customs & Central Excise (Appeals)
Subject: Audit Report No. 15/2011-12, Section 2 – Duty Drawback Scheme: All aspects to be covered in speaking orders issued in each case of export under section 74 of Customs Act, 1962- regarding
Ma’am/Sir,
Reference is drawn to Board’s Circular No.46/2011-Cus dated 20.10.2011 and Instructions of even number dated 31.7.2013 related to Audit Report No. 15/2011-12, Section 2 – Duty Drawback Scheme.
- Board has noted that the Circular No. 46/2011-Cus had earlier directed, inter alia, passing of speaking orders, after following the principles of natural justice, under section 74 of Customs Act on the issues of establishing identity/determination of use of goods under re-export under section 74 of Customs Act. Further, taking note of Audit observations regarding payment of claims under section 74 in a manner inconsistent with provisions of Rule 5 of Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995relating to manner and time of claiming drawback, the Board’s Instructions dated 31.7.13 had directed field formations to, inter alia, ensure due diligence in the application of said Rule.
- In the light of the overall position that appealable speaking orders in original are to be issued in section 74 cases, it is clarified for removal of doubts that the aspect of how the provisions, of the various sub-rules of said Rule 5, are satisfied or not satisfied, as also other attendant aspects relevant to sanction of the re-export drawback, should also invariably be covered in the speaking order in original issued by the officer.
Yours faithfully,
(Ashok Kumar Pandey)
Senior Technical Officer (Drawback)
Tel:23362843
Email: ashok.p@nic.in
F.No.603/01/2011-DBK
RBI/2013-14/232 A.P. (DIR Series) Circular No. 38 dated 06-09-2013
RBI/2013-14/232
A.P. (DIR Series) Circular No. 38
September 6, 2013
To
All Category - I Authorised Dealer Banks
Madam/ Sir,
Purchase of shares on the recognised stock exchanges in accordance with SEBI (Substantial Acquisition of Shares and Takeover) Regulations
Attention of Authorised Dealer Category – I (AD Category-I) banks is invited to Schedule 1 to Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified by the Reserve Bank vide Notification No. FEMA 20/2000-RB dated 3rd May 2000 , as amended from time to time.
- At present, Foreign Institutional Investors, Qualified Foreign Investors and Non Resident Indians are eligible to acquire shares on the recognised stock exchanges in compliance with the conditions under Schedule 3, 4, 5 and 8 of FEMA Notification No. 20. A non-resident is not permitted to acquire shares on stock exchange under FDI scheme under Schedule 1 of FEMA Notification No. 20.
- The issue of acquisition of shares under the FDI Scheme by a non-resident on a recognised stock exchange has been reviewed and as a further measure of liberalization, it has been decided that a non resident including a Non Resident Indian may acquire shares of a listed Indian company on the stock exchange through a registered broker under FDI scheme provided that:
- The non-resident investor has already acquired and continues to hold the control in accordance with SEBI (Substantial Acquisition of Shares and Takeover) Regulations;
- The amount of consideration for transfer of shares to non-resident consequent to purchase on the stock exchange may be paid as below:
- by way of inward remittance through normal banking channels, or
- by way of debit to the NRE/FCNR account of the person concerned maintained with an authorised dealer/bank;
- by debit to non-interest bearing Escrow account (in Indian Rupees) maintained in India with the AD bank in accordance with Foreign Exchange Management (Deposit) Regulations, 2000;
- the consideration amount may also be paid out of the dividend payable by Indian investee company, in which the said non-resident holds control as (i) above, provided the right to receive dividend is established and the dividend amount has been credited to specially designated non –interest bearing rupee account for acquisition of shares on the floor of stock exchange.
- The pricing for subsequent transfer of shares to non-resident shareholder shall be in accordance with the pricing guidelines under FEMA;
- The original and resultant investments are in line with the extant FDI policy and FEMA regulations in respect of sectoral cap, entry route, reporting requirement, documentation, etc;
- AD Category - I banks may bring the contents of the circular to the notice of their customers/constituents concerned.
- Reserve Bank of India has since amended the relevant Regulations vide Notification No.FEMA.279/2013-RB dated July 10, 2013 notified vide G.S.R.No.591 (E) dated September 4,2013 and Notification No.FEMA.280/2013-RB dated July 10, 2013 notified vide G.S.R.No.531 (E) , dated August 5,2013.
- The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully
(Rudra Narayan Kar)
Chief General Manager In-Charge
RBI/2013-14/233 A.P. (DIR Series) Circular No. 39 dated 06-09-2013
RBI/2013-14/233
A.P. (DIR Series) Circular No. 39
September 6, 2013
To
All Category - I Authorised Dealer Banks
Madam/ Sir,
Export and Import of Currency
Attention of Authorised Persons is invited to Regulation (2) of Foreign Exchange Management (Export and Import of Currency) (Amendment) Regulations, 2009, notified vide Notification No. FEMA 195/RB-2009 dated July 7, 2009, in terms of which, any person resident in India may take outside India or having gone out of India on a temporary visit, may bring into India (other than to and from Nepal and Bhutan) currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.7,500 per person.
- As part of providing greater flexibility to the resident individuals travelling abroad, the existing limit, mentioned above, has been enhanced to Rs. 10,000 per person.
- Accordingly, any person resident in India:
i) may take outside India (other than to Nepal and Bhutan) currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.10,000 (Rupees ten thousand only) per person; and
ii) who had gone out of India on a temporary visit, may bring into India at the time of his return from any place outside India (other than from Nepal and Bhutan), currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.10,000 (Rupees ten thousand only) per person.
- Authorised Persons may bring the contents of this circular to the notice of their constituents, customers and foreign counter parties concerned.
- Reserve Bank of India has since amended the relevant Regulations vide Notification No.FEMA.258/2013-RB dated February 15, 2013 , notified vide G.S.R.No.480(E) dated July 12, 2013
- The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(Rudra Narayan Kar)
Chief General Manager-in-Charge
Notification No 40 (RE-2013) / 2009-2014 dated 06-09-2013
Government of India
Ministry of Commerce & Industry
Department of Commerce
Udyog Bhawan
Notification No. 40 (RE–2013)/2009-2014
New Delhi, Dated 6th September, 2013
Subject: Non-insistence on sequencing of import of gold being followed by export of gold jewellery/articles of gold.
S.O.(E) In exercise of powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), read with paragraph 2.1 of the Foreign Trade Policy, 2009-2014, as amended from time to time, the Central Government hereby notifies the following:
- Chapter 71 of ITC(HS) 2012 Schedule 1 stipulates that import of gold is ‘subject to RBI regulations’. The Reserve Bank of India has issued certain guidelines including A.P. (DIR Series) Circular No.25 dated August 14, 2013 on the operational aspect of the scheme of import of gold. Para 2(f) of the circular No.25 states:
“(f) Any authorization such as Advance Authorization / Duty Free Import Authorization (DFIA) is to be utilized for import of gold meant for export purposes only and no diversion for domestic use shall be permitted. “
- This condition (f) is getting interpreted as every import under Advance Authorisation /DFIA has to be followed by a corresponding export. Normally import precedes export under AA/DFIA but in certain cases export may precede import. It is necessary that every import under AA/DFIA must be duly accounted for by corresponding exports without insisting on the sequence: import preceding export.
- Accordingly, import of gold under AA/ DFIA would have a corresponding export but not necessarily import first and export later.
- Effect of this Notification: Import of gold under AA/ DFIA would not necessarily be followed by export but each import has to be accounted for.
(Anup K. Pujari)
Director General of Foreign Trade
E-mail: dgft[at]nic[dot]in
(Issued from 01/94/180/88/AM11/PC-4)