S.No. 6 of the notification no. 25/2012-ST dated 20.06.2006 exempts services provided by an arbitral tribunal or an individual as an advocate or a partnership firm of advocates by way of legal services to a business entity with a turnover up to rupees ten lakhs in the preceding financial year. Does the word ‘turnover’ include exports?
That notification does not define ‘turnover’. So, that word has to take the normal commercial meaning, which would be ‘total sales’, including exports.
What is the taxability of commission earned in foreign exchange for marketing the goods of foreign parties in India, under the old and current service tax laws?
In the dispensation before 1.7.2002, the Business Auxiliary Service covered the service you refer to and the same was also covered under Rule 3(iii) of the Export of Services Rules, 2005. After 1.7.2012, as per Section 66B of Finance Act, 1994, a service provided or agreed to be provided in the taxable territory alone is taxable. As per Rule 3 of the Place of Provision of Services Rules, 2012, the place of provision of service is the location of the service receiver, which for the service in question is a non-taxable territory.
Can we use duty credit scrips issued under Target Plus scheme for payment of 3 per cent duty under the EPCG scheme under Para 3.17.5 of the FTP or for regularisation of default under Para 3.17.11 of the FTP?
Target Plus scheme existed in the 2004-09 Policy. In my opinion, the provisions you refer to apply for duty credit scrips issued under the current 2009-14 Policy.
Can we accept the value of capital goods supplied by an NRI partner towards his equity participation?
Part II of RBI Master Circular 15/2012-13 dated 2nd July 201does not envisage investment in partnership firms by way of supply of capital goods.
On exports against advance authorisation issued under SION C-832, are we required to declare on the shipping the gross weight of the inputs used?
According to S No 5 of General Notes to SION, you have to declare the quantity allowed for import minus the wastage permitted — i e, the net content on the shipping bill. The Customs need a separate declaration regarding gross quantity used. The export product description must correctly state whether the articles you export are with or without the handle/lid/anti-skid gasket.
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Against our turnkey contract with a contractor for supply and installation of certain equipments, he ordered the goods from a domestic manufacturer. We, as the EPCG licence holder, got an invalidation letter issued in favour of the manufacturer. He consigned the equipments to us, which are installed by the contractor at our premises. Is the JDGFT right in denying deemed export benefits against the supplies because the contractor paid the manufacturer against the supply invoice issued in his name?
JDGFT may have narrowly interpreted Para 5.6 of FTP, which says that the EPCG licence holder must source goods from a domestic manufacturer. DGFT may grant you necessary relaxation/relief.
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