Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: empanelment :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: cpt :: form 3cd :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: ACCOUNTING STANDARD :: due date for vat payment
 
 
Customs and Excise »
 Refund of IGST paid on export of goods under rule 96 of CGST Rules,2017
 Customs And Central Excise Drawback – Part II
 Customs Valuation (Determination of Value of Imported Goods) Rules 2007
 Amendment to Customs Valuation Rules – Notification No. 91/2017 (NT)
 GST on Custom House Agents
 The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes
 The Customs and Central Excise Duties Drawback Rules, 2017
 Man fleeing from Customs arrested
 Refund of amount on account of double-payment of Customs
 SC paves way for trial against RIL in 1987 excise evasion case
 GST: Govt sets up panel to receive profiteering complaints

Mumbai customs detains 15 ships for duty evasion
January, 16th 2012

At least 15 ships of Indian firms, including Oil and Natural Gas Corp. Ltd (ONGC), Great Offshore Ltd, Hind Offshore Pvt. Ltd and Samson Maritime Ltd, have been detained by Indian customs for alleged evasion of duties. Following this, these vessels are losing an average of Rs. 60 lakh a day as they are not able to ferry cargo.

File Photo
Shipping industry representatives claimed the Mumbai division of customs has seized even older Indian vessels citing a 2001 regulation. The authorities are demanding levy on these ships at the old value and not taking into consideration depreciation, they said.
The customs authorities demand duty5% of a ships valuewhen shipping companies seek permission to ply coast-to-coast in India. Till such time these ships are plying international routes, they are exempted from paying such duty.

The customs division started charging the fee in November.

Shobha Chary, chief commissioner of customs of zone 1 (Mumbai), confirmed the development. Two customs officials said at least 15 vessels were detained but declined to divulge details citing ongoing investigations.

Experts say the sudden imposition of this duty will adversely affect the shipping lines.

A small ship of Hind Offshore supplying equipment to oil exploration blocks in the sea is under detention for at least a month and another vessel of the same firm has been seized for the past 20 days. Each of them is losing Rs. 10 lakh a day.

A couple of ONGC vessels are losing Rs. 60 lakh a day each as they are detained.

Company representatives met customs authorities early this month regarding this.

Interestingly, in November 2010, the Central Board of Excise and Customs had issued a circular saying vessels already acquired and plying in India do not need to pay any duty.

They are also exempted from filing bills of entry. India-registered ships are required to file bills of entry only at the time of breaking of the vessel, according to finance ministry guidelines.

A bill of entry is a declaration by an importer or exporter of the exact nature, precise quantity and value of goods that have landed or are being shipped out. Prepared by a qualified customs clerk or broker, it is examined by customs authorities for its accuracy and conformity with tariff and regulations.

It is illegal to demand duty on vessels that have been acquired five years ago, said J.S. Sanghvi, a consultant at Sanjosh Consultants Pvt. Ltd. A former Indian Revenue Service official, Sanghvi is advising several of the companies whose ships have been detained.

Earlier, we were not required to pay duty on supply vessels. Now, they are classifying certain supply vessels of my clients as tugs and demanding tax. As we are losing revenue, bankers are also refusing to extend bank guarantee to companies, Sanghvi said. Tugs are small boats that carry cargo.

Anil Devli, chief executive officer at lobby group Indian National Shipowners Association (Insa), said such a duty was announced in 2001 but never implemented. If the law did exist all these years, why was it not implemented? Devli asked.

He said vessels imported before 2001 should not pay any duty. They entered Indian waters several times. No duty on the value of the vessels was sought to be imposed all these years by the very Mumbai customs. Why are the vessels being asked to pay duty on the original value of the vessels? Devli asked.

S. Khader Rahman, additional commissioner of customs (Mumbai), said his organization is not making law but simply interpreting it. He did not elaborate.

Insa has approached the Central Board of Excise saying no duty should be imposed on these vessels since the customs authorities are aware of these vessels being in Indian waters.

Shipping Corp. of India Ltds chairman and managing director S. Hajara said the Indian maritime sector needs a level playing field with other parts of the world. Shipping Corp. manages vessels of ONGC.

Chary of Indian customs said her organization is aware of the gravity of the issue. We understand the repercussions of this in the shipping industry. We are discussing it with our top authorities, and the matter is under the active consideration of the (finance) ministry, Chary said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Custom Software Development Outsourcing Custom Software Development Offshore Cus

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions