Gargi Ranade
31 August 2011 at 14:17
Dear all,
We are an EOU, We are importing goods from related parties. Hence matter has been refferd to Customs- Special Valuation Branch (SVB), as per practice, SVB ordered for Provisional Assesement of related party Imports with 5% extra duty deposit (EDD) as per Circular No. 11/2001-Customs dated 23.02.2001.
Kindly let us know, wheather legally EDD can be made by an EOU ?
EOU is carrying out import clearance without payment of whole of custom duty as per Notification No. 52/2003 -customs dated 31.03.2003.
Waiting for reply,
Thanking you in advance.
Anonymous
30 August 2011 at 17:49
QUERY FOR OPINION
FACTS
1. The company is a SSI unit in Rajasthan, manufacturing marble slabs (which is excisable at INR 30 per square meter) and availing exemption under SSI on grounds of turnover being below INR 1.50 crores (the “Company”) .The Company is not registered under central excise as it is exempt. The Company has a Bombay office which trades in marble slabs and has a high turnover, but it is purely trading.
2. For year 2008-2009, the total turnover of the Company’s manufacturing unit was INR 1.34 crores.
3. In year 2009-2010, the Company was allotted license to import marble blocks which the Company imported. But, instead of getting the raw material to the Company’s manufacturing unit, the Company got it processed on job-work basis in Silvassa from other manufacturers and the job-worker duly paid excise on such goods removed. The Company was entitled to receive CENVAT credit but did not claim any credits as it was not registered. We are counting this as a trading activity of the Company’s Rajasthan unit and not manufacturing activity and are not counting this turnover (approximately INR 5 crores) for basic exemption limit of INR 1.5 crore.
4. For the year 2009-2010, the situation for the Company was:
Manufacturing turnover at factory : INR 40 lacs
Trading turnover at Silvassa : INR 8.25 crores
(We are counting the job-work turnover as trading turnover because the blocks have not gone to the factory of the Company at all and we have processed the goods outside in other factories and sold them also from outside, i.e. Silvassa.)
5. Similarly, for the year 2010-11, the situation for the Company turns out to be:
Manufacturing turnover at factory: INR 40 lacs
Trading turnover at Silvassa : INR 9.60 crores
QUERY
1. Will the trading turnover be counted as manufacturing turnover for the purpose of calculating excise exemption limit of INR 1.5 crores and also for the registration limit of INR 4 crores, or given the facts above we can still continue to enjoy exemption under SSI registration because the manufacturing turnover is below INR 1.5 crores?
2. Director General of Foreign Trade (hereinafter referred to as the “DGFT”) related query: We are allotted license on actual user condition to import marble blocks and sell them after processing. We are of the view that as per DHFT law under actual user condition, it is not compulsory for the importer to process goods in its own factory only, but the importer can also get it processed on job-work basis from other manufacturers and then sell the finished goods. By doing so yhe importer complies with actual user condition . Is our view correct and legally tenable? Such sale i.e sale done on jobwork basis outside the unit has been counted by us as manufacturing turnover for the purpose of license allocation in DGFT only , but for excise purposes as per provisions of excise it has been taken as trading turnover because of the facts mentioned above. Although the Company is exempt, it has paid excise on all the goods processed at Silvassa because we do not consider it as part of manufacturing activity and so the jobworker paid excise then we sold the goods and count it as a trading activity. Is this legally coorrect?
Also, in this regard please note that the concerned government department has verbally conveyed to us that since the marble blocks were imported by us, then processed in the job-workers’ factory and then sold, they will not come under the purview of trading activity as the form of raw material has changed from blocks to slabs. Is this a legally tenable objection? Our view is that even if the form has changed, it does not amount to manufacturing activity of the unit, as the activity is taking place totally outside the Company’s factory. Is this view correct and legally tenable?
Anonymous
30 August 2011 at 16:28
sir,
as we understand an NRE (non residential external a/c) is absolutely tax free a/c (for proncipal and interest derived) for that financial year for which the person qualifies to be an NRI (as per the definition gazatted by Income Tax).
my question is - does his interest income (lets say he holds Resident FD, Resident Saving a/c etc) he derives also be taxable and if so at what rate. my associated point that i would want to ne answered through this great forum is - does the 180,000 Rs (in financial year) slab of Income Tax Dept not come in play for an NRI for his interest incomes.
kindly shed some light sirs...
thank you.
neeraj
30 August 2011 at 15:53
DERA SIR,
I HAVE PUCHASED FLAT FOUR MONTH BEFORE & PAID COMPLETE PAYMENT TO THE BUILDER & DONE THE REGISTRY OF FLAT WITH INTKAL.NOW BUILDER SEND ME LETTER FOR SERVICE TAX ,WHICH WAS NOT DISSCUSSED WITH ME.I HAVE TO PAY THIS TAX OR NOT.
Anonymous
30 August 2011 at 14:51
HOW I KNOW MY WARD, CIRCLE & RANGE WHEN I PREPEARED MY INCOME TAX RETURN.
JEGADEESAN
29 August 2011 at 19:42
Dear Sir,
I wish to clarify a doubt regarding EI Sale.
Mr. A regd dealer in Tamilnadu & purchased the goods from B of Mumbai. Further A transferred the same goods directly from Mumbai to B's Customer(C) who has office in Tamilnadu.
Is it eligible to get exemption U/s 6 (2) of CST Act?
Further is it possible the goods ordered from B to deliver the same to C's godown in Kerala?
Your immediate reply will amke me glad.
Mahesh Kakade
28 August 2011 at 18:06
I want to Work Contract Tax.
If a company have taken an EPC job for installation of project, in the scope of work supply equipment, civil work and erection value has been clearly defined. In addition to the above in civil work it further defined the scope of civil work i.e pure labour work, supply of cement, supply of steel and aggregates.
I want to know how much WCT will be require to pay?
Also any other scheme to save the tax in the above contract?
Mahesh Kakade
28 August 2011 at 08:19
I want to know for greenfield project can a company availed CENVAT benefit of Service Tax & Excise .
If a company putting a power plant for their Green field Project and any expenditure incurred on account of paying a service tax & Excise, can this service tax & Excise will be CENVATABLE for green field project.
1. If Yes, any notification
2. If No, any notification.
Mahesh Kakade
28 August 2011 at 08:18
I want to know for greenfield project can a company availed CENVAT benefit of Service Tax.
If a company putting a power plant for their Green field Project and any expenditure incurred on account of paying a service tax, can this service tax will be CENVATABLE for green field project.
1. If Yes, any notification
2. If No, any notification.
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Conversion of eou to dta
(1) Whether the finished goods lying at the time of debonding eligible for clearing under bond for export? What are the relevent circular by the CBEC?
(2)Can be the balance CENVAT credit transferred to DTA unit?