Against export of our services, we have received payment in foreign currency from our customers. We have got such receipts credited to Exchange Earners Foreign Currency (EEFC) Account. Our bankers have issued Foreign Inward Remittance Certificates (FIRC) that mentions only the foreign currency amount that we received. We now need to claim duty credits under the Served From India Scheme (SFIS) at 10 per cent of the rupee amount received. What exchange rate should we adopt for arriving at the rupee equivalent of the foreign exchange earned?
You may ask your bank to issue a certificate regarding the exchange rate prevalent on the date you received the inward remittance from your customer. Based on that exchange rate certificate, you may convert the foreign currency amount that you received to equivalent Indian rupees and approach your chartered accountant for suitable certification prescribed in the application for SFIS at Annexure to form ANF 3B, and on that basis claim your SFIS entitlement.
We are a recognised Manufacturer Export House - Status Holder in the textile segment. We are in the process of importing second hand capital goods for expansion of our manufacturing facilities. Can we import second hand capital goods under Status Holder Incentive Scrip (SHIS)?
As per Para 3.16.3 of FTP, SHIS shall be used for import of capital goods (as defined in FTP) relating to sectors specified in Para 3.16.4 of FTP and para 3.10.8 of HBP. There is no bar on utilising the SHIS scrip for payment of duty on imported second hand capital goods.
When we cleared our goods for exports, we paid excise duty on the CIF value of the export goods, as our understanding was that we have to pay duty at the transaction value. We paid the duty by utilising the Cenvat Credit balance that we had. But, we claimed rebate only on the basis of the FOB value of exports. Can we take now take re-credit of the duty paid on the difference between the CIF and FOB values?
In my opinion, you can take the re-credit of the duty paid on the amount in excess of the duty payable by utilising Cenvat Credit, on the basis of decisions in the cases of Bhagirath Textiles Ltd. [2006 (202) ELT 147 (GOI]) and Panacea Biotech Ltd. [2012 (276) ELT 0412 (GOI)].
We have a manufacturing unit in a SEZ. In the notification no. 12/2013-ST dated 1.3.2007, regarding exemption on services provided to SEZ units, there is mention of Central Excise Registration as well as taking Cenvat Credit by SEZ units. Are we in violation for not taking any such registration?
Section 3 of the Central Excise At, 1944 excludes SEZ units from payment of excise duty. So, you need not take any Central Excise registration and you cannot take Cenvat Credit also. So, you may take a Service tax registration as mentioned in Para 3 (iii) (g) of that notification. Reference to Central Excise registration in that notification appears to be incorrect.
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