TaxTMI 
TaxTMI 
Issues related to furnishing of Bond/Letter of Undertaking for Exports
X X X X Extracts X X X X
X X X X Extracts X X X X
....rnishing of Bond/Letter of Undertaking for Exports - Reg. Kind attention is invited to the Central Board of Excise and Customs (CBEC) Circular No. 4/4/2017-GST, dated 07.07.2017 clarifying the procedure prescribed for making exports of goods and services without payment of integrated tax with respect to furnishing of bonds/Letter of Undertaking. Therefore, in exercise of powers conferred under s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ady been prescribed vide circular No. 2/2/2017-GSTdated 4th July, 2017. The bond shall be furnished on non-judicial stamp paper of the value as applicable in the State in which bond is being furnished. 4. A clarification has been sought as to whether bond to be furnished for exports is a running bond (with debit / credit facility) or a one-time bond (separate bond for each consignment / export).....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ecurity for the bond. In this regard it is directed that the jurisdictional Commissioner may decide about the amount of bank guarantee depending upon the track record of the exporter. If Commissioner is satisfied with the track record of an exporter then furnishing of bond without bank guarantee would suffice. In any case the bank guarantee should normally not exceed 15% of the bond amount. 6. A....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ruction, to exporter, the Bond/LUT in all cases be accepted by Central tax officer till such time the said administrative mechanism is implemented. Central Tax officers are directed to take every step to facilitate the exporters. 8. Attention is further invited to circular No. 26/2017 - Customs dated 1st July 2017, vide which it has been clarified that the existing practice of sealing the contai....