As expected, the Union commerce ministry made some useful amendments to the Foreign Trade Policy (FTP) and gave some additional benefits to exporters before the election code of conduct took effect. The finance ministry also altered its dispensations for importers which want to pass on Cenvat credit to buyers upon resale/transfer of the goods and notified the procedures for claim of Cenvat Credit refund under Rule 5B of the Cenvat Credit Rules, 2004.
To help exporters seeking corporate debt restructuring (CDR) from banks due to financial difficulties, the FTP was amended to provide that wherever the holder of any EPCG (Export Promotion Capital Goods) Authorisation is granted relief under CDR, it may be allowed extension of the export obligation period up to three years from the date of approval of the CDR scheme, without having to pay any composition fee for this. Under the Market Linked Focus Product scheme (MLFPS), 13 items (mostly textiles) were notified for additional benefit of duty credits of two per cent of the FOB value of exports. Ten more chemicals were added in the list of items eligible for two per cent duty credit under the scheme. For five items relating to the telecommunication sector, the duty credit entitlement was raised from two per cent to five per cent. Three more items were added to benefits under the Focus Product Scheme. Cotton yarn was removed from the exclusion list for the purpose of benefits under the Incremental Exports Incentivisation Scheme.
The finance ministry brought the Customs Baggage Declaration Regulations, 2013, into effect from the beginning of this month. The Central Board of Excise and Customs (CBEC) revised its action plan for monitoring cases where the export obligation period and time prescribed for furnishing evidence of fulfilling the export order was over. CBEC instructed that the guidelines contained in the Ammonium Nitrate Rules, 2012, for its import or export be scrupulously followed by the field formations.
With effect from April, importers which issue invoices on which Cenvat credit can be taken must be registered with the Central Excise department. The registered importer is required to file a quarterly return. So, if manufacturers or service providers or registered dealers want to get inputs from an importer, they must ensure the latter is registered with the central excise department. The Cenvat Credit Rules, 2004, have been amended to facilitate distribution of credit by the input service distributor to its manufacturing units or units providing output service.
CBEC has notified the procedure, safeguards, conditions and limitations for claiming refund of unutilised Cenvat credit taken on inputs and input services during the half-year for which it is claimed, for providing the services of renting of a motor vehicle designed to carry passengers on the non-abated value to any person who is not engaged in a similar business, supply of personnel for any purpose or security services or service portion in the execution of a works contract. The notification prescribes a formula for claiming refund and stipulates this shall not exceed the amount of service tax liability paid or payable by the recipient of the service. Only one claim should be made for each half year. The amount of refund claimed should be debited in the Cenvat account. No refund is admissible for credit taken on input or input services received prior to July 1, 2012.
Source:- business-standard.com
No comments:
Post a Comment