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 STANDARDS :: VAT RATES :: list of goods taxed at 4% :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: TDS :: empanelment
 
 
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

F1 race caught up in Customs row
September, 19th 2011

Just 45 days before India's date with its first Formula 1 race, the government is locked in a tussle with the organizers over customs duties that threatens to derail the mega event.

The sticking point is the Customs department's insistence that the organizers of the Formula 1 Airtel Indian Grand Prix pay duty upfront on all equipment coming into the country for the race. While no valuation has ever been done on F1 equipment, it is estimated that the duty on them could come to around Rs 600 crore or more.

The organizers, Jaypee Sports India (JPSI), have been asking for declaration of a custom bonded area, as is the practice worldwide, which would enable the F1 cargo to land and immediately be taken to the track where everything is assembled and dissembled, and then flown out of the country after the event. This is done on the premise that nothing is being imported or exported in or out of the country, thus avoiding custom duty.

For instance, during the Singapore Grand Prix, the country's customs department allows the temporary import of all cars and equipment for the main and support races. This enables the goods to be imported into Singapore without payment of duty or Goods & Services Tax (GST), with the condition that these goods would be were re-exported after the event.

However, the Indian government, bent on classifying Formula 1 as entertainment and not sport, has not extended any such help, the organizers say.

As a result, JPSI might have to pay custom duty on the cargo that lands in India. With no known estimates of the F1 paddock, JPSI could be coughing up Rs 600 crore or more to allow the cargo to land in India for the race. After a deduction of 2%, the remaining amount will be returned to JPSI.

JPSI has over the past few months been writing letters and meeting government officials to get all approvals in place for the grand prix. In a letter dated Sept 7, 2011, signed by Shankar Lal, under secretary in the sports ministry, the government approved the Federation of Motor Sports Clubs of India's request to hold the Formula 1 Grand Prix in the country at "no cost to the government" but subject to certain conditions.

Even after issuing the letter, the government, is still mulling the issue. "No decision has been taken yet. It is being discussed," said a revenue department official. But sources in the finance ministry said under the rules F1 is not eligible for any exemption. Under sec 25 (2) of the Customs Act 1962, ad-hoc exemption is given to some security establishments and imports related to "national interest" only.

There is another interesting irony in the government's stance. Though it insists that F1 is not a sport, yet it recognizes the Federation of Motor Sports Clubs of India as a national sports federation.

More bizarrely, one of the conditions for approval to the F1 event, according to a sports ministry letter dated August 10, 2011, was that JPSI make a "contribution" of Rs 10 crore per annum to the National Sports Development Fund for the entire duration of the contract, that is, 2011 to 2015, extendable by another five years, and set up sports academies.

 
 
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