The Paper defines black money as: Black money can be generated through i illegal activities like crime, drug trade, terrorism and corruption or ii failing to pay dues to the public exchequer in one form or another. In the second case, activities might be legal but the perpetrator may simply have failed to report the income generated to avoid paying tax.
Customs clearance is often a task left to specialists, but it is useful for logistics personnel to have an overview of some of the challenges and pitfalls. This white paper outlines a number of areas of Indian customs regulations and practice which are useful for anyone involved in import or export to know.
It is not a substitute for specialist professional advice tailored to your circumstances. Customs also supports other government agencies by ensuring the correct application of their regulations. The Bureau of Indian Standards BISwhich has the responsibility as National Standards Body to develop standardisation, marking and quality certification of certain goods.
The Wireless Planning Commission WPCwhich is a wing of the Ministry of Communications and has the responsibility as regulatory authority for frequency spectrum management.
All wireless equipment needs approval from the WPC. Approval is required for all Pharmaceuticals and Bulk Drug. Animal Quarantine AQ is the regulatory authority for imports of animals and animal-related products. Normal processing time is 72 hours, provided the application contains all the necessary details and is completed correctly.
Product classification under a proper HSN or CTH is very crucial part of customs processing because they not only determine the tariff or duty rate, but also the end use of the product. The Customs tariff Heading covers 21 sections and 98 chapters.
Classification requires in-depth understanding of the product description and use as well as knowledge of the classification system process. The third set of two digits in the code gives the Customs Tariff Sub-heading.
The resulting six-digit code is aligned with the Harmonized System of Nomenclature adopted by the World Customs Organization.
The last two digits indicate the Customs Tariff sub-head for the classification. Be aware that the customs value should not be arbitrary, fictitious or based on the value of indigenous goods.
It should be real and based on the actual value of goods under import, or of similar goods. It should also derive from a sale or offer of sale in the ordinary course of business under fully competitive conditions. If the actual value is not ascertainable, the customs value should be based on the nearest ascertainable equivalent of such value.
The agreement on customs valuation contains provisions to implement these principles. If Customs suspects that the declaration of value is not correct, there can be delays in obtaining customs clearance, not to mention heavy penalties for misdeclaration.
A method may only be applied if the previous method or methods in the list cannot be applied. They are thus listed in order of priority. For example, method 1 must be applied unless it cannot be.
Then method 2 must be considered. It is not permitted to simply select a preferred method among the six. However, Indian regulations provide six methods of valuation: The Transaction Value Method; Comparative Value Method based on Transaction Value of identical goods; Comparative Value Method based on Transaction Value of similar goods; Deductive Value Method based on subsequent sale price in the importing country; Computed Value Method based on cost of materials, fabrication and profit in the country of production; Fallback Method based on previous methods with greater flexibility.
Based on the Incoterms given, if the actual value is unavailable, the supplier invoice value is considered and the other factors indicated in the below table below are added according to the standard defined by Customs.
Repaired and returned goods need a complete set of documents when exported from India for repairs. Even if the repair is free of charge for the importer, the cost of repair must still be declared for duty purposes. Second hand goods are subject to import restrictions into India.
The assessable value method may only be used if authorised chartered engineers are used to determine the valuation. Do not dispatch second hand or used goods without confirmation from the destination office in India Some HSN or CTH are restricted and prohibited for import into India. The importer must verify the DGFT list of restricted and prohibited items prior to importation.Continuing with it’s commitment of creating mass awareness towards fast track implementation of Goods and Services Tax (GST), the Confederation of All India Traders (CAIT), unveiled “GST White Paper” in a well-attended conference organised in New Delhi.
This white paper provides detailed insight into development of GST related features in Microsoft Dynamics NAV The documentation starts by describing Key Areas of GST and India State GST (SGST) States Intra-state supply of goods or services in India Integrated GST (IGST). The Goods and Services Tax (GST) is arguably the most momentous of reforms targeted at the Indian fiscal system.
To be enforced, in all probability, from Jul 1, , the GST .
a common market for India with a seamless indirect tax regime. The country can expect to have three types of GST namely Central GST, State GST and Integrated GST within the GST credit chain. Furthermore an additional 1% origin tax on supply of inter-state goods outside the GST credit chain. During NAV implementation the functional team has number of things to consider specially regarding GST now a days.
In case of multi currency and multi tax authority, this is being more complicated as well.
|Special offers and product promotions||In other words, supply is life blood of GST regime. Following are certain instances of such cascading of taxes Permits restricted inter levy credits between Excise and Service Tax.|
|Free white paper on Indian customs | DSV||Taxes on lottery, betting and gambling State cesses and surcharges Entry tax not in lieu of octroi.|
10 White Paper on goods and services tax: Proposals for the administration of the goods and services tax, New Zealand Government, March , p. 11 Report of the Advisory Panel on Goods and Services Tax to the Minister of Finance, June , p.