Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: list of goods taxed at 4% :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: form 3cd :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: TDS :: VAT Audit :: due date for vat payment
« Service Tax »
 Benefits of GST to home buyers In the next lifetime
 GST: Jaitley says yes to cess, no to additional tax for compensating states
 GST to enhance ease of doing business, says Assocham
 Govt sources say cess is a better option than high tax rate
 Goods and Services Tax: There should not be more than three grades of rates, says Chidambaram
 Chidambaram says there cannot be multiple tax slabs in GST
 Service tax officials transferred for favouring realtor
 GST, a challenge and opportunity for accounting professionals’
 Service Tax On Hotels And Restaurants – Recent Delhi High Court Judgment
 GST Council discusses 4-tier tax rate, cess on demerit goods
 Why you shouldn’t miss these three simple tax saving options beyond Section 80C

Goods and Services Tax to be aligned with foreign trade after April 1,2010
April, 17th 2009

The new foreign trade policy, which is being prepared by the commerce ministry, will be aligned with the Goods and Services Tax (GST) only after implementation of this indirect tax mechanism.

The new policy is likely to be announced by the next government at the Centre by mid-2009, while the GST is likely to be implemented from April 1, 2010.

The current foreign trade policy of 2004-09 was unveiled by the United Progressive Alliance government on September 1, 2004 and was to expire on March 31, 2009. However, the Directorate General of Foreign Trade (DGFT) under the commerce ministry had extended its tenure till a new policy was ready.

The foreign trade policy has several export promotion measures that reimburse indirect levies charged on exports. These levies will now be subsumed under the proposed GST and will have only two slabs one for the Centre and the other for the states. Therefore, the new export policy will have to specify how the current benefits given to exporters are matched with the proposed GST rates.

We expect the new policy to be released by mid-2009. Till the GST mechanism is in place, provisions of the policy will not be changed. This is to ensure there is no confusion. Once GST is rolled out, the foreign trade policy will be modified to take into account the new taxation mechanism, said a government official requesting anonymity.

Officials are still not clear if the state-level GST levied on exporters will be reimbursed. At the moment, many state-level duties are not reimbursed to exporters.

The DGFT has already started consultations with various export-related organisations and industry lobby groups on the new Foreign Trade Policy.

Officials maintained that the new government would take a call whether the present structure of the foreign trade policy should be continued.

The process of consultations will go on till April 20, after which the suggestions will be compiled. Thereafter inter-ministerial consultations will begin. The commerce ministry wants to be ready with the recommendations when the new government is in place, the official added.

Before the current policy was released, foreign trade procedures were spelt out through an export-import policy. This mechanism was prevalent from 1992 to 2004. The UPA government replaced this with the current five-year trade policy to bring stability and incorporate sector-specific export promotion measures.

Exporters have been demanding a host of benefits in the new policy, including continuation of the Duty Entitlement Passbook Scheme, which was extended till further notice by the commerce ministry. This scheme, which is not compliant with world trade rules, reimburses indirect tax levied on inputs used by exporters.

Representatives of the Federation of Indian Chambers of Commerce and Industry (Ficci), who met DGFT officials today, demanded customised schemes to help exporters tide over the liquidity crisis, reduce transaction time and other costs related to foreign trade.

Pointing out that reimbursement of Value Added Tax levied on exporters took about 12 to 15 months, Ficci demanded refund of the Fringe Benefit Tax and Service tax.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

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