Direct Tax
Extension of time limit for submission of certain tds/tcs statements for Q1
Circular No. 9/2023 dated 28 June 2023
- The Central Board of Direct Taxes (CBDT) extends the due date for furnishing of Form 26Q and 27Q TDS statements for the first quarter (April to June) of the financial year 2023-24 from 31 July to 30 September.
- Furthermore, the time limit for submission of Form 27EQ Tax Collected at Source (TCS) statement has also been extended from 15 July to 30 September.
Important changes W.R.T LRS and TCS
Press Release dated 28 June 2023
- In the Budget this year, certain changes were announced to the system of TCS on payments under the Liberalized Remittance Scheme (LRS) and on overseas tour program packages. These were to take effect from 1 July 2023. However, these changes will now be applicable from 1 October 2023.
- It has been decided that there will be no change in the rate of TCS for all purposes under LRS and for overseas travel tour packages, regardless of the mode of payment, for amounts up to INR 0.7 million lakhs per individual per annum.
- From 1 October 2023, an increased rate of TCS from 5% to 20% for remittance under LRS as well as purchase of overseas tour program, will be applicable.
- For the overseas tour program package, TCS shall continue to apply at the rate of 5% for the first INR 0.7 million per individual per annum and above this limit, TCS at the rate of 20% will be collected will be collected at the rate of 20%.
- These changes will not be applicable when the remittance is for education or medical purposes.
Indirect Tax
Customs
CBIC clarifies procedure for IGST and Cess payment under Advance Authorisation scheme pursuant to ‘pre-import condition’ upheld by Apex Court
Circular No. 16/2023-Cus dated 7 June 2023
The Central Board of Indirect Taxes and Customs (CBIC) has issued guidelines for implementation of the Hon’ble Supreme Court’s judgment in the matter of Cosmos Films Ltd., which upheld the mandatory fulfillment of ‘preimport condition’ under the Advance Authorisation Scheme. Accordingly, for payment of IGST and Compensation Cess along with interest for past imports, the Out-Of-Charge (OOC) shall be canceled, and the subject Bills of Entry (BoE) shall be assessed again. On completion of the payment, the port of import shall make a notional OOC for the BoE on the Customs Electronic Data Interchange (EDI) system (so as to enable transmission of IGST and Cess payments to GSTN portal). This procedure can be applied once to a BoE. It has been further clarified that ITC with respect to such assessed BoE shall be available subject to eligibility and prescribed conditions.
CBIC’s pilot import and re-export clearances at ACC, Bengaluru, under the Electronic Repairs Services Outsourcing initiative
Circular No. 14/2023-Cus dated 3 June 2023
The Electronic Repairs Services Outsourcing (ERSO) initiative involves the import of goods (defective, damaged electronic goods) by designated repair service entities in India, to repair and re-export them reliably. The pilot procedure for import and re-export clearances is being tested at ACC Bengaluru to achieve an ecosystem conducive to providing quick and reduced turnaround time. This involves, inter alia, furnishing of continuity/running re-export bond (without bank guarantee) by the importer and opting for the first check while filing the import declaration.
Mandatory additional qualifiers in import/export declarations in respect of certain products w.e.f. 1 July 2023
Circular No. 15/2023 dated 7 June 2023
In consultation with the Department of Chemicals and Petrochemicals, Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy (AYUSH), and the Directorate General of Foreign Trade (DGFT), the CBIC has prescribed additional qualifiers at the time of filing relevant declarations in respect of imports under Chapters 28, 29, 32, 38 and 39 of the Customs Tariff Act, and in respect of exports under Chapters 12, 30, and 84 of the Customs Tariff Act. The said qualifiers shall be mandatory from 1 July 2023.
Foreign Trade Policy
Norms fixation/review of advance authorization from new IT module
Trade Notice No. 10/2023 dated 22 June 2023
The DGFT has activated the process of Norms Fixation/Review of Norms to electronic mode from physical mode. Accordingly, all the applicants seeking Norms Fixation/Review of Norms from Norms Committee (NC-7) may apply only via online mode by navigating to the DGFT website, and no hard copies shall be accepted herewith.
DGFT introduces an online personal hearing facility for exporters from 1 June 2023
Trade Notice No. 6/2023-24 dated 31 May 2023
The DGFT has introduced an online facility of requesting appointments for virtual meetings/personal hearings by the exporters w.e.f. 1 June 2023. The Regional Authorities of DGFT shall provide a suitable time as well as the link for virtual hearing through the online facility.