Specialising in the entire gamut of import export laws, rules, procedures and documentation particularly in the area of customs, excise, service tax, GST,FEMA, foreign trade policy. Based at Ahmedabad, Gujarat practising since last 39 years. Regular part time faculty at many prestigious educational institutes. Chairman of the Indirect Taxes Committee at Gujarat Chamber of Commerce & Industries for the past 10 years and also their representative at the customs or excise (GST) public grievances and the Regional Advisory Committee chaired by Ahmedabad Commissionerates/the Zonal Chief Commissioners for past several years. Visit my site svmodi.com for contact details.
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Issue Id: 116132
I refer to the detailed article published in TMI on 04-02-2019 written by the respected Mr. M. Govindrajan elaborating on the sum and substance of ...
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Export GST refund conditioned on foreign exchange realisation risks re taxing exports and double liability for exporters.
The note argues that conditioning GST refunds on realisation of export proceeds in foreign exchange is inconsistent with GST's status as a destination consumption tax and with many prior export reliefs that are not recoverable for non realisation. It warns that recovery of refunds after export would effectively re tax goods consumed abroad, imposes extra loss on exporters who also face FEMA penalties, and raises double jeopardy concerns. The author urges deletion of the foreign exchange realisation condition or use of credit insurance to protect exporters against both non realisation and refund recovery. (AI Summary)
Goods and Services Tax - GST
Cenvat credit for sales promotion services: statutory definition and circular support credit despite regional judicial divergence.
Availability of cenvat credit for service tax paid on services of sales commission agents depends on treating those services as sales promotion under the statutory Business Auxiliary Service definition, which expressly includes commission agents, and on the rules provision adopting statutory meanings; an administrative circular clarifies credit is admissible, yet certain jurisdictional rulings have created a conflicting territorial position. (AI Summary)
Service Tax