Can we make imports within the validity period of advance authorisation issued in the earlier policy, where we have not imported any materials but have completed full or part of the export obligation?
As per para 1.05 (a) of the new Foreign Trade Policy (FTP), 'any licence/authorisation/ certificate/scrip/any instrument bestowing financial or fiscal benefit issued before commencement of FTP 2015-20 shall continue to be valid for the purpose and duration for which such licence/authorisation/ certificate/scrip/any instrument bestowing financial or fiscal benefit Authorisation was issued, unless otherwise stipulated'. Therefore, you can import under your authorisation within its validity but you must take note that as per para 2.18 (a) of Handbook of Procedures, Vol. 1 'authorisations must be valid on the date of import'. The earlier provision stating that 'where an authorisation expires during the month, such authorisation shall be deemed to be valid until last day of concerned month' does not appear in the new Handbook.
We had filed an application for Duty-free Import Authorisation (DFIA) last year but it was not issued. We have exported several consignments quoting file number. Can we get DFIA now?
This situation is not envisaged or dealt with in the new FTP. Many exporters may be facing similar problems. So, you may represent the matter to the DGFT directly and through your export promotion council, seeking a suitable solution quickly. Conceptually, I see no harm in issuing DFIA as per current policy against exports already made by you, as the essential requirements of the DFIA scheme in the new policy are being met.
We refer to your reply in Business Standard dated April 7, 2015, stating that the proposed new rate of service tax at 14 per cent will be applicable from a date to be notified by the government after passage of the Finance Bill, 2015 by Parliament, and that till then the present rate of 12 per cent will continue, along with 2 per cent education cess and 1 per cent secondary and higher education cess, which have not yet been exempted on service tax. Can you please give necessary legal back-up for your opinion?
You may refer to CBEC Circular no. 183/02/2015-ST dated April 7, 2015, which gives the legal justification and clarifies that the new service tax rate shall come into effect from a date to be notified by the central government after the enactment of the Finance Bill, 2015 and that until the time the revised rate comes into effect, the 'Education Cess' and 'Secondary and Higher Education Cess' will continue to be levied in service tax.
As marketing agents for some foreign companies, are we required to pay service tax on the commission received in US dollars from our principals for the sales that we cause either in India or other countries?
oYes. Your services are liable to service tax from with effect from October 1, 2014, consequent to an amendment in the definition of 'intermediary' in the Place of Provision of Services, Rules 2012 through notification no. 14/2014-ST dated July 11, 2013.
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