Direct Tax
Cost of Inflation Index notified by the Central Government
Notification S.O. 2103 (E) [NO. 44/2024/F.No.370142/10/2024- TPL] dated 24 May 2024
To calculate capital gains under Section 48, the Cost of Inflation Index (CII) is notified by the Central Government at the beginning of every financial year.
For FY 24-25, the provisional CII is 363, effective from 1 April 2024.
Indirect Tax
Customs
CBIC amends All Industry Rates of Duty Drawback effective from 3 May 2024
Circular No. 04/2024-Cus dated 7 May 2024 r/w Notification Nos. 33/2024-Cus (NT) dated 30 April 2024 and 77/2023-Cus (NT) dated 20 October 2023
The Central Board of Indirect Taxes and Customs (CBIC) has notified amendments to the All Industry Rates (AIRs) of Duty Drawback, which came into effect on 3 May 2024. The key changes have been summarized below:
- Enhanced Duty Drawback rates/ caps are introduced for specific items, including marine products, bags, handbags, trunks, suitcases, articles of bed linen, radar apparatus, radio navigational aid apparatus, and unmanned aircraft.
- AIRs are introduced for specified defense sector products under Chapters 72, 75, 81, 87, 88, and 93.
- Furthermore, new tariff items have been created to differentiate export products better, viz. "Breaded shrimp/prawn", "Breaded Squids", and "Sports gloves, other than Golf gloves, made of leather" and "Sports gloves, other than Golf gloves, made of leather in combination with textile materials."
- The cap has been rationalized for "Golf Gloves made of leather in combination with textile materials" under TI 420304.
Government imposes Anti-dumping Duty on import of 'Pentaerythritol'
Notification No. 08/2024-Cus (ADD) dated 16 May 2024
The CBIC has imposed Anti-dumping Duty (ADD) on the import of 'Pentaerythritol' originating from China PR, Saudi Arabia, and Taiwan at varied rates. The duty is applicable for a period of five years and is payable in Indian currency.
Foreign Trade Policy
Regularization fees for bona fide export obligation defaults inapplicable to Advance Authorizations issued pre-April 2023
Policy Circular No. 02/2024 dated 3 May 2024
DGFT has addressed the applicability of regularization fees prescribed for bona fide defaults in export obligations under Advance Authorizations under Handbook of Procedure (HBP) 2023. It has been clarified that the requirement of paying 3% amount on account of non-achievement of minimum Value Addition [as mentioned in Para 4.49(b) of HBP 2023], and amount equivalent to 10% of CIF value of unutilized imported material [as given in Para 4.49(a)(ii) of HBP 2023], is applicable only in case where the Advance Authorization is issued on or after 1 April 2023.
Thus, Authorizations issued prior to this date will be governed by the relevant provisions of HBP under which they were issued for regularization of defaults.
However, this clarification would not warrant a refund of fees already paid by Authorization-holders.
Application for review of Norms Committee decisions can be filed till December 2024
Policy Circular No. 03/2024 dated 30 May 2024 r/w Addendum dated 31 May 2024
It has been clarified that Advance Authorization holders may file their review applications till 31 December 2024 against decisions of the Norms Committee taken before 1 April 2023, in terms of Para 4.17 of HBP 2023. No such review will be entertained beyond this date.
Furthermore, the review will be applicable only for Advance Authorizations issued on or after 1 April 2019 and no review decision has already been taken by the Norms Committee.