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: ACCOUNTING STANDARD :: VAT RATES :: cpt :: list of goods taxed at 4% :: form 3cd :: empanelment :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: ACCOUNTING STANDARDS
 
 
« News Headlines »
 Income tax returns (ITR) filing guide: 10 excellent tax-saving options other than Section 80C to save money
 TDS Rate Chart for AY 2018-19
 Last date to submit third installment of advance tax is December 15
 5 tax-saving funds that have given stellar returns in the past 5 years
 Find out which ITR Form is suitable for you
  Pr CIT vs. Baisetty Revathi (Andhra Pradesh High Court)
 What is income tax?
 Refund procedure initiated under GST
 Income tax returns (ITR) filing: How to get capital gains tax benefits on assets in own name
 7 avenues to help you save tax under Section 80C of Income Tax Act
 How to make income tax law less taxing

Foreign commission agents: EEPC wants service tax refund limit raised to 12.5%
April, 14th 2008
Ministry urged to follow standing RBI guidelines


Most exporters pay commission to their respective foreign agents only after realisation of export proceeds.


Describing the recent Service Tax Refund Notification on Foreign Commission Agents (FCAs) issued by the Finance Ministry as bureaucratese at its worst, Mr Rakesh Shah, Chairman of Engineering Export Promotion Council (EEPC), said here that it goes not only against the RBI guidelines but also against the Departments own notification issued in 2002.

Mr Shah said the April 1, 2008 Notification has allowed refund on the service tax paid to foreign commission agents to the extent of only 2 per cent of the f.o.b. value of exports, when the RBI guidelines allow FCAs to be paid up to 12.5 per cent of f.o.b. value of exports.

He said the Department of Revenue by its own circular issued in 2002 had clarified that for those exporters availing of export benefits, the foreign agency commission would be 12.5 per cent.

He said it was surprising that the April 1, 2008 Notification has set a limit of only 2 per cent of f.o.b. value of exports for foreign commission agents payment to be refundable.

The 2 per cent f.o.b. limit is hardly acceptable in these times and will not in any way benefit exporters.

Pointing out that the principal notification with regard to the 16 services that come under the purview of service tax refund was issued on October 6, 2007, Mr Shah observed that this notification had a further restrictive provision which states that the refund claim has to be filed on a quarterly basis, within 60 days from the end of the relevant quarter during which the said goods have been exported.

He said most exporters pay commission to their respective foreign agents only after realisation of export proceeds. The period allowed for export proceeds realisation by RBI is 180 days for exporters and 360 days for status holders. According to him, if exporters have to claim service tax refund within a period of 90 days as ordained by the October 7, 2007 Notification, it would further add to the fund squeeze that small and medium exporters were now facing, confronted by the rupee appreciation and sharp increase in raw material prices.

Mr Shah said he has already represented the above anomalies to the Finance Minister and Commerce Minister, requesting that the service tax refund limit on foreign commission agents be increased to 12.5 per cent of f.o.b. value from the allowed 2 per cent.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Mission

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