We are a trading company. We import goods and sell them to dealers. We pay special additional duty (SAD) at the time of import and then claim a refund of the same. However, since our bills of entry are provisionally assessed, the customs authorities are not processing our application for refund. Please advice how to take it forward?
This is an issue faced by importers in various ports. We understand that in Mumbai, the Commissioner of Customs (Import) had issued a public notice stipulating that SAD refund claims should be processed even if the bills of entry are provisionally assessed. Based on this, you could request your jurisdictional customs authorities to follow similar methodology.
We are an export house. We had imported certain capital goods under the export promotion capital goods (EPCG) scheme. However, we have not been able to fulfill the minimum export obligation as required under EPCG scheme. Please advise on the custom duty implications on account of the non-fulfillment of export obligations under the scheme.
As you are aware, import of capital goods at a concessional duty rate, subject to export obligation, is permitted under EPCG scheme. The aforesaid concession is subject to execution of a bond by the importer binding himself to fulfill export obligation on free-on-board (FoB) basis, equivalent to eight times the duty saved on the goods imported or for such higher sum as may be fixed by the licensing authority, within a period of eight years from the date of issue of licence.
Where the export obligation of any particular block is not fulfilled, the importer is required to pay the customs duty on the goods within three months from the expiry of the said block. Additionally, the importer is required to pay interest calculated from the date of clearance of the goods up to the date of payment of duty. Since you have not been able to fulfill the export obligation, you should be required to pay the customs duty with interest. The customs duty to be paid by you would be the amount of duty saved in proportion to the unfulfilled export obligation to the total export obligation.
I am a chartered accountant. As a part of my work, I represent my clients before the statutory authorities. My work includes data analysis, review of queries raised by the department, preparing and filing of replies. I understand that representational services provided by a CA have been exempted from service tax. Please advice whether only the actual representation work would be exempted or would other incidental work also be exempt. Further, since I cannot appear before the courts, I need to engage an advocate while I undertake the actual representation work and provide other services such as preparation of appeals, etc. Would my services still be exempt from service tax?
You are correct in your understanding that ?representational services? provided by a chartered accountant in the course of any proceedings has been specifically exempted from the applicability of service tax. In our view, services that are incidental to the representational services provided by you should also qualify for the above exemption. Even if the representational services are provided by external counsels and you perform only those works that are incidental to such representation, the same could still qualify for the above exemption. However, such a view could be litigative since you are, in fact, not representing the client before the court of law but only involved in provision of services that are incidental to such representation.
We are a company providing services in relation to maintenance and repair of roads. We understand that recently maintenance and repairs of roads has been exempted from service tax. Could you please confirm the same?
Notification No 24/2009-Service Tax has exempted services in relation to management, maintenance or repair of roads from the service tax levy with effect from July 27, 2009. Previously, the said activity/service was taxable as ?management, maintenance or repair service?. Accordingly, road maintenance and repair services provided by you prior to July 27, 2009 would be liable to service tax. However, such services rendered post July 27, 2009 would be exempt from service tax.
Respondents are senior professionals at Ernst & Young. The replies do not constitute professional advice. Neither E&Y nor FE are liable for any action taken on the basis of these replies