For our small-scale engineering unit, we imported CNC machines under Export Promotion Capital Goods (EPCG) scheme in 2010. Despite our best efforts, we could not export. Now, we have to pay duty, but is there any way to waive interest at 18 per cent per year, which is very high for us? After paying the duty, can we take Cenvat Credit of CVD and SAD?
For regularisation of bonafide default in fulfilling the export obligation under the EPCG scheme, you have to pay the duty saved proportionate to the unfulfilled export obligation plus interest at 15 per cent per year from the date of clearance of the goods, as per the notification no.102/2009-Cus and 103/2009-Cus, both dated 11.09.2009. There is no provision to waive the interest. After duty payment, you can take Cenvat Credit of the CVD and SAD, as per Cenvat Credit Rules, 2004.
Is there any scheme for green technology from DGFT?
Para 5.16 of the Handbook of Procedures, Vol. 1 lists 16 green technology products. As per Para 5.10 of the Foreign Trade Policy, for exporters of these products, the specific export obligation under the EPCG scheme will be 75 per cent of the normal export obligation.
We want to take some space in a warehouse in Europe, ship our goods to that warehouse and then deliver the goods to our customers from that warehouse against payment. Can we do that and, if so, do we need any permission?
As per Para B.13 of RBI master Circular dated 1.7.2013, AD Category-I banks may consider the applications received from exporters and grant permission for opening/hiring warehouses abroad if the applicant's export outstanding does not exceed five per cent of exports made during the previous financial year, the exporter has a minimum export turnover of $100,000 during the last financial year, period of realisation is as applicable and all transactions will be routed through the designated branch of the AD banks. Permission may be granted to the exporters initially for a period of one year and renewal may be considered subject to satisfying the requirement mentioned. So, if you meet the specified conditions, you may approach your bank for necessary permission.
Our Resident Welfare Association (RWA) collects Rs 8000 per month from some members for maintenance and upkeep of common facilities. We understand that there is exemption for maintenance fee of up to Rs 5,000. Does it mean they have to pay service tax only on Rs 3,000?
Exemption at S.No.28(c) in notification No. 25/2012-ST prescribes a ceiling of Rs 5,000 per member per month for services provided by an unincorporated body or a non-profit entity registered under any law for the time being in force such as RWAs, to its own members. Since the per-month, per-member contribution of some members of your RWA exceeds Rs 5,000, the entire contribution of such members whose per-month contribution exceeds Rs 5,000 would be ineligible for the exemption under the said notification, as per CBEC Circular no. 175/01/2014-ST dated 10.01.2014.
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