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Procedure for Export of Samples of PPE Medical Coveralls for COVID-19

Procedure for Export of Samples of PPE Medical Coveralls for COVID-19

The Directorate General of Foreign Trade (DGFT) has specified the Procedure for Export of Samples of PPE Medical Coveralls for COVID-19 vide Trade Notice No. 19/2020-2021. After the announcement of Revised Procedure and Criteria for Export of PPE Medical Coveralls , there were several representations from the exporter for shipment of Samples of PPE Medical Coveralls outside India for testing purposes.

Considering this, The DGFT categorized PPE Samples as Restricted Export Item (Non-SCOMET). Hence the exporter needs to obtain an export authorization from the Government for shipments of Samples of PPE Medical Coveralls. The exporter can apply for export authorization/license online through the new DGFT Platform under Non-SCOMET Restricted items sections. The present article briefs the Procedure for Export of Samples of PPE Medical Coveralls for COVID-19,

Important Announcement for Exporter

  • DGFT also clearly mentioned that only 50 units of PPE Medical Coveralls for COVID-19 samples per IEC per country will be allowed
  • The exporter can apply for export authorization online through DGFT’s ECOM Module as Non-SCOMET Restricted items and exports are not required to furnish any hard copy of the application via email or post to DGFT.

Prescribed Date for Application Submission

As per the trade notice, the exporter can apply anytime for the export authorization. The exporter can apply for export authorization/license online through the new DGFT Platform under the Restricted Export Item (Non-SCOMET) and specify the item description as“PPE medical coveralls for COVID-19 Samples†in the application.

The validity of Export Authorization/License

The validity of Export Authorization for the export of samples of PPE Medical Coveralls for COVID-19 is 3 months from the date of the issue.

Documents Required for Export License

The following documents need to be submitted for getting the export license for the Export of Samples of PPE Medical Coveralls for COVID-19

  • Copy of the Import Export Code of the Firm
  • Documentary proof of manufacturing of textile/medical textile products or medical devices by the firm

Note: All documents must be duly self – attested by the authorized person of the firm.

Application Procedure for Export Authorization

As mentioned above, the exporter can obtain the Obtain Export Authorization of Non-SCOMET Restricted items by applying DGFT‘s ECOM application module . Once the DGFT accepted the license request, the export authorization for the shipment of Samples of PPE Medical Coveralls for COVID-19 will be issued.

Know more about Procedure to Obtain Export Authorization of Non-SCOMET Restricted items, click here

Other Conditions to Get Export License

  • All the relevant documents as mentioned above need to be furnished along with the application to verify the eligibility criteria and to issue an export license.
  • Incomplete applications will not be considered for the issue of the export license.
  • Any application received through email or any other format will not be considered for authorization.

The DGFT’s notification pertaining to the Revised Procedure and Criteria for Export of PPE Medical Coveralls for COVID-19 is attached below for reference.

TN19 2020

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Blocked Input Tax Credit – Rule 86A

Blocked Input Tax Credit – Rule 86A

The main objective of introducing the ‘Goods and Services Tax ’ is a seamless flow of input tax credit at each stage. However, with the passing times, various fraudulent activities like issuance of invoices without actual supply, issuance of fake invoices, etc. have given rise to escape the revenue of the exchequer. To overcome the loophole, the Government introduced the new concept of the blocked input tax credit, vide insertion of rule 86A to the Central Goods and Services Tax Rules, 2017. The current article briefly covers the concept of a blocked input tax credit .

Provisions relating to blocking of the input tax credit

Provisions of rule 86A of the Central Goods and Services Tax Rules, 2017 empower the Commissioner or any officer authorized by him (not below the rank of an Assistant Commissioner) to disallow the debit of an amount equal to the blocked input tax credit (listed below) in electronic credit ledger or disallow the refund claim of any unutilized credit if the below conditions are satisfied-

  1. The Commissioner or the authorized officer has a reason to believe that the registered person has fraudulently or ineligibly availed by the registered person; and
  2. The reasons for blocking of input tax credit are to be recorded in writing.

List of the blocked input tax credit

As per provisions of rule 86A of the Central Goods and Services Tax Rules, 2017, the blocking of the input tax credit is possible if the officer has a reason to believe that the input tax credit has been fraudulently availed / ineligible to avail based on the following reasons-

Particulars Reasons for blocking of input tax credit
The input tax credit has been availed on the basis of tax invoices/ debit notes/ any other document as prescribed under rule 36. Such tax invoices/ debit notes/ any other document is issued by a registered person who is found to be either non-existent or is not conducting business from any place for which registration is obtained.
Such tax invoices/ debit notes/ any other document is issued without actual receipt of goods or services or both.
The GST charged with respect of such tax invoice/ debit notes/ any other document is not paid to the credit of the Government.
The input tax credit has been availed by the registered person. Such a registered person is found to be either non-existent or is not conducting business from any place for which registration is obtained.
Such a registered person is not in possession of tax invoice/ debit note/ any other document as prescribed under rule 36.

In case the Commissioner or the authorized officer believes the existence of any of the above circumstances, then, the Commissioner/ officer can disallow the debit of an amount equal to such fraudulent credit or refund, as the case may be.

Availability of blocked input tax credit

Under the following two circumstances, the blocked input tax credit will be available to the registered person-

  1. The Commissioner or the officer is satisfied that the conditions for disallowing debit of electronic credit ledger don’t exist anymore.
  2. The restriction shall cease to have effect after completion/ expiry of a period of one year from the date of imposing the restriction.

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CBDT Amends Rule 31A and TDS Return Forms 26Q & 27Q

CBDT Amends Rule 31A and TDS Return Forms 26Q & 27Q

CBDT vide Notification No. 43/2020 dated 3rd July 2020 has made certain amendments in the present Rule 31A of the Income Tax Rules, 1962 with respect to the furnishing of TDS returns in Form 26Q and Form 27Q .

Here is the list of amendments made in the Rule 31A.

1. Rule 31A(4)(viii) amended to include the transactions where tax has been deducted at a lower rate

Finance Act 2020 had amended Section 197A(1F) to allow for a lower deduction of tax in certain cases. Prior to the amendment the said section only provided for non-deduction of tax in certain cases. Rule 31A(4) prescribes the list of particulars that a deductor is required to furnish in the statement of deduction of tax. 

The present clause (viii) of the said rule prescribes that a deductor shall furnish the particulars of the amount paid or credited on which no tax has been deducted in accordance with notification issued under Section 197A(1F). An amendment has been made to said clause (viii) to direct the deductor to include details of all those transactions where tax has been deducted at a lower rate. The amendment is consequential to the amendment made under Section 197A(1F).

2. Existing Rule 31A(4)(ix) amended to incorporate the amendments in Section 194N relating to deduction of tax on cash withdrawals

Section 194N deals with the deduction of tax on withdrawal of cash in excess of a specified limit. The section had been substituted by Finance Act 2020 and amendments were made to provide for additional and stricter provisions for deduction of tax on cash withdrawals by the non-filers of income tax returns. The amendments were also made to provide for various clauses in which either the deductions of tax shall not be made or shall be made at lower rates as may be prescribed by the government by way of notifications. 

The present clause (ix) of Rule 31A(4) has been substituted with the following clause in line with the amendments made in Section 194N. The substituted clause states as under:

“furnish particulars of amount paid or credited on which tax was not deducted, or deducted at lower rate in view of the notification issued under second proviso to section 194N or in view of the exemption provided in third proviso to section 194N or in view of the notification issued under fourth proviso to section 194N.â€

3. Four new clauses have been added in Rule 31A(4) after clause (ix) to furnish the details of transactions where tax has been not deducted or deducted at a lower rate:

Clause Description The relevant section in relation to which the clause has been inserted
(x) “Furnish particulars of amount paid or credited on which tax was not deducted or deducted at lower rate in view of the notification issued under sub-section (5) of section 194A†Section 194(5) had been inserted by Finance Act 2020 to empower the Central Government to notify such payments to such classes of person/(s) from which deduction of tax shall not be made or made at a lower rate  
(xi) “furnish particulars of amount paid or credited on which tax was not deducted under sub-section (2A) of section 194LBA†Section 194LBA(2A) inserted by Finance Act 2020 provides that no deduction of the tax shall be made by a business trust from the dividend distributed to the unitholders of business trust in a case where the special purpose vehicle has not exercised the option available under Section 115BAA
(xii) “furnish particulars of amount paid or credited on which tax was not deducted in view of clause (a) or clause (b) of sub-section (1D) of section 197A†Section 197A(1D) provides that no deduction of tax shall be made by an Offshore Banking Unit from the interest payments to a person being a non-resident or not ordinarily resident in India
(xiii) “furnish particulars of amount paid or credited on which tax was not deducted in view of the exemption provided to persons referred to in Board Circular No. 3 of 2002 dated 28th June 2002 or Board Circular No. 11 of 2002 dated 22nd November 2002 or Board Circular No. 18 of 2017 dated 29th May 2017â€

Circular No. 3/2002: It provides an exemption from deduction of tax under sections 193, 194A, and 194K of the Income Tax Act on the payments of incomes to Ramakrishna Math and Ramakrishna Mission whose income is exempt under section 10(23C)(iv) of the Income Tax Act.

Circular No. 11/2002: It extended the exemption provided under Circular No. 3/2002 to provide that incomes being interest on all securities under section 193 may be paid to Ramakrishna Math and Ramakrishna Mission without tax deduction.

Circular No. 18/2017: It allows payments to be made to certain specified institutions without deduction of tax.

The notification also contains the amended version of Form 26Q and Form 27Q. To view the copy of the notification you may click here . Read further to understand the changes in the forms.

Changes in Form 26Q 

1. Following sections have been inserted in the form so that the details of transactions relating to such sections can be added:

Section Nature of Payment Section Code
194K Income in respect of units 94K
194N Payment of certain amounts in cash 94N
194N First Proviso Payment of certain amounts in cash to non-filers 94N-F
194O Payment of certain sums by the e-commerce operator to e-commerce participant 94O

2. Section code for section 194J has been divided into 2 parts to give effect to two different rates of 2% and 10% as provided by amendments in section 194J by Finance Act 2020:

Section Nature of Payment Section Code
194J(a) Fees for technical services (not being professional services), royalty for sale, distribution or exhibition of cinematographic films and call center @2% 94J-A
194J(b) Fee for professional service or royalty etc. @10% 94J-B

3. The remarks and their codes for lower or non-deduction of tax have been amended in line with the amendments made in Rule 31A vide this notification.

4. Columns have been added in the annexure to furnish details in respect of cash withdrawn by a resident on which tax is being deducted pursuant to the provisions of Section 194N.

Changes in Form 27Q

1. Following sections have been inserted in the form so that the details of transactions relating to such sections can be added:

Section Nature of Payment Section Code
194N Payment of certain amounts in cash 94N
194N First Proviso Payment of certain amounts in cash to non-filers 94N-F

2. Columns have been added in the annexure to furnish details in respect of cash withdrawn by a non-resident on which tax is being deducted pursuant to the provisions of Section 194N.

3. The remarks and their codes for lower or non-deduction of tax have been amended in line with the amendments made in Rule 31A vide this notification.

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Extension of the timeline under RERA – COVID-19

Extension of the timeline under RERA – COVID-19

In the year 2017, the real estate sector has been brought under RERA regulations. Under RERA regulations, the individual states and union territories are allowed to build their own rules, under the broad framework placed out by the Centre.

As one of the significant reliefs to the real estate sector, amidst COVID-19, the Finance Minister recently announced COVID-19 to be treated as ‘Force Majeure’ event and accordingly extend the timeline for completion of the real estate project by a period of six months.

After the Finance Minister’s announcement, the Ministry of Housing and Urban Affairs issued an advisory, which is taken up and explained in the present article.

Analyzing the RERA advisory on extension

The Ministry of Housing and Urban Affairs issued an advisory on 13th May 2020 to the State Governments. The advisory clarifies to treat the COVID-19 pandemic as an event of ‘Force Majeure’ in terms of section 6 of the Real Estate (Regulation and Development) Act, 2016.

In order to protect the interest of all the stakeholders, the advisory issued by the RERA authorities permits the regulatory authorities of the states and the union territories to issue the following orders or directions-

  1. To extend the registration/ completion date, automatically, by six months on account of the COVID-19 outbreak by applying Force Majeure provisions under RERA.
  2. Based on the situation of the respective states and reasons to be recorded in writing, the regulatory authorities can consider an extension of the timeline for a further period of three months.
  3. The regulatory authorities may issue new Registration Certificates, mentioning the extended/ revised timelines, to applicable registered real estate projects.
  4. Concurrently, the timeline for all the statutory compliance relating to provisions RERA may be extended.

Unless otherwise prescribed by the respective regulatory authority of state/ union territory, it should be noted here that the advisory is applicable for the registered projects for which completion/ revised/ extended date as per the registration expires on or after 25th March 2020.

The release of the advisory by the RERA authority would importantly avoid the multiplicity of application from the promoters/ developers of various real estate projects requesting to grant the extension of the timeline.

Post RERA authority’s advisory, the Rajasthan Real Estate Regulatory Authority issued an order announcing as under-

  • Extension of twelve months has been provided to the real estate projects.
  • The extension is available to all the projects registered before 19th March 2020.

Before RERA advisory, the regulatory authorities in Maharashtra, Gujarat, Tamil Nadu, and Gujarat have already given an extension of three to six months for completion of the projects. However, it would interesting to observe their action post RERA advisory, which is still pending.

Analyzing the effect of extension on developers

COVID-19 and the subsequent lockdown have adversely affected the real estate sectors. The recent announcement, followed by the RERA advisory, will prove to be a great sigh of relief to the developers as no cases can be registered against them for the extended period, nor will they be accountable to pay any penalty to the regulatory authority or the buyers.

With regard to the advisory, the following are the essential points which the developers need to keep in mind-

  • The extension is available by default, and the developers are not required to make an application for claiming the extension.
  • The regulatory authority of the respective state will issue a fresh registration certificate with a revised timeline for applicable projects. Concurrently, all the statutory compliance timelines will get extended.
  • If the developer requires any further extension (other than the default extension), the developer will have to apply for the same under section 6 of the Act.

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Food Business Annual/ Half -Yearly Return Filing Date Extended

Food Business Annual/ Half -Yearly Return Filing Date Extended

On account of the prevailing lockdown in India for the COVID-19 pandemic, the Food Business Operator (FBO) is facing difficulties in the submission of Annual/Half-yearly return. Considering the issues, the Food Safety Standard Authority of India has issued a circular concerning the extension of the timeline for filing Annual/Half-yearly Returns for Food Business. As per this notification, FSSAI extended the timeline for submission of annual return for the financial year 2019-2020 and a half-yearly return for the October 2019 – March 2020 till 31st July 2020. In this regard, the following procedural formalities need to be followed by FBO for filing Annual/ Half -Yearly Return.

Annual/Half -Yearly Return for Food Business

According to the Food Safety and Standards (Licensing and registration) Regulations, 2011, food businesses having an FSSAI license need to file FSSAI returns. The FSSAI returns are basically of two types:

FSSAI Annual Return – Food Business Operators (FBO) involved in the manufacturing and importing of food products need to submit Annual Returns by 31st May of every preceding financial year.

FSSAI Half -Yearly Return – Manufacturers of Milk and Milk products need to submit Half-yearly returns within one month of completion of the previous half-year.

A food business is required to file a separate FSSAI Annual return for every FSSAI license issued under the FSSAI regulations, irrespective of whether the same Food Business Operator holds more than one license.

Know more about the FSSAI Registration/Licensing in India

FSSAI Annual Return – Form D1

The FSSAI Annual Return is required to be filed in a prescribed format laid down by the concerned Food Safety Commissioner concerning the category of food products manufactured or sold by the business during the previous financial year.

Eligible FBO for Annual Return Filing

Following Food Business Operator (FBO) need to file the FSSAI annual return in the Form D-1 to the Food Licensing Authority about the category of food products manufactured or sold by them during the preceding financial year:

  • Food manufacturers
  • Labelers
  • Importers
  • Packers
  • Every FBO except the ones dealing in milk and milk products.

Exemptions from Filing FSSAI Annual Return

According to the Food Safety and Standards (Licensing and registration) Regulations, 2011, the following food businesses are exempted from filing an FSSAI annual return in India:

  • Fast food joints
  • Restaurants
  • Grocery stores
  • Canteens

Due Dates for the Submission of Form D1

As mentioned above, the due date for annual return filing is 1st April to 31st March of every financial year. As per the FSSAI notification, the due date for submission of annual return is extended till 31st July 2020.

Penalty for Late or Non-submission of Annual Returns

Non-submission of annual return for the food business beyond 31st May of every year will attract a late fee of Rs. 100 per day till the date of submission of FSSAI annual return.

Note: According to the notification, the penalty will not be deducted from the FBO till 31st July 2020

Details Required for Filing FSSAI Annual Return

The FBO need to provide the following details while filling the FSSAI Annual Return:

  • Name of the food product manufactured or imported
  • Size of the bottle, any other package (like PP) or bulk package
  • Quantity in Metric Ton
  • The selling price of the food products per Kg or unit of packing
  • Value of the Food Product
  • Imported quantity in Kg
  • The list of details of countries or port where the food products are imported
  • Rate per unit or per Kg of packing cost, insurance, and freight (C.I.F) free on board. / F.O.B.

The format of the FSSAI Annual Return Form D1 is as follows:

D1

FSSAI Half Yearly Return – Form D2

According to the FSSAI regulation, all manufacturers of milk and milk products having an FSSAI license need to file the half-yearly returns known as Form D2. The half-yearly returns in Form D2 are of 2 types as mentioned below:

  • The one related to the period from 1st April to 30th September every year
  • The one related to the period from 1st October to 31st March every year.

Due Dates for the Submission of Form D2

As mentioned above, the FBO needs to file half yearly return within one month of completion of the previous half-year. Due to the COVID-19 pandemic, the FSSI extended the due date for submission of annual return till 31st July 2020.

Penalty for Late or Non-submission of Half-Yearly Return

Non-submission of FSSAI half yearly return for the food business beyond 31st May of every year will attract a late fee of Rs. 100 per day till the date of submission of half-yearly return. According to the notification, the penalty will not be deducted from the FBO till 31st July 2020

Details Required for Filing FSSAI Half-Yearly Return

The FBO needs to provide the details of milk and milk products being handled, manufactured, and imported, by the milk manufacturer’s half-yearly.

The format of the FSSAI Half-Yearly Return Form D2 is as follows:

D2

Procedure to File Annual/ Half -Yearly Return

The FBO needs to download the requisite form D1/D2 Based on the kind of business (KOB. Fill the basic details of the food business and review the details provide and corroborate with the facts declared during the licensing process.

In case of any deviations, please update the license by applying for modification through Food Safety and Compliance System (FoSCoS).

Upon finalizing the details, the FBO can either send the details through registered post or email to the licensing authority within the respective jurisdiction. The details of the licensing authority can be accessed through the official website of the FSSAI .

Note: Please note FSSAI doesn’t acknowledge confirming the successful submission of the returns.

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Revised Procedure and Criteria for Export of PPE Medical Coveralls for COVID-19

Revised Procedure and Criteria for Export of PPE Medical Coveralls for COVID-19

The Directorate General of Foreign Trade (DGFT) has revised the procedure and criteria for the export of PPE Medical coveralls for COVID-19 vide Trade Notice No. 18/2020-21. The DGFT permitted shipments of personal protective equipment (PPE) with a monthly export quota of 50 lakh units per month as per a trade notice dated June 29, 2020.

After all the export applications for PPE Medical coveralls were found ineligible, the DGFT has revised the application procedure and criteria for the Export of PPE Medical Coveralls for COVID-19. As per the revised procedure, the exporters need to file a fresh online application for the export of PPE Medical Coveralls. The present article briefs the procedure to obtain export authorization for PPE export.

Procedure and Criteria for Export of PPE Medical Coveralls – Trade notice dated June 29

As per the trade notice dated June 29, DGFT announced that a monthly export quota of 50 Lakh PPE Medical Coveralls for COVID-19 units has been fixed and the exporters are allowed to file an application for export authorization from 1st to 3rd day of each month. The application filled 1st to 3rd day of a month will be considered for the quota of that month.

All applications for the export of PPE Medical Coveralls will be examined as per the Handbook Procedure and all approval of the application will be done by the 10th of every month. Only one application per Import Export Code will be considered during a Month.

Know more about trade notice dated June 29 – Procedure and Criteria for Export of PPE Medical Coveralls for COVID-19

Reason for Revised Procedure for Export of PPE

As per the trade notice dated June 29, DGFT examined all applications filled from July 1 to 3 and none of the online applications fulfilled the criteria specified in the trade notice dated June 29, 2020. All the applications, therefore, have been found ineligible for the allocation of export quota. Hence DGFT specified revised application procedure and criteria, and exporters are invited to send fresh online applications.

Important Announcement for Exporter

  • As mentioned above, all the requests filed by exporters for shipments of PPE in July were found ineligible and exporters need to file a fresh online application via a new DGFT platform under the Non-SCOMET category.
  • DGFT also clearly mentioned that only 50 Lakhs units of PPE medical coveralls for COVID-19 will be allowed per month.
  • The exporter can apply for PPE export authorization online through DGFT’s ECOM system as Non-SCOMET Restricted items and exports are not required to forward any hard copy of the application via email or post to DGFT.

Prescribed Date for Application Submission

As per revised criteria for the month of July 2020, online applications for filed from 22nd to 24th July will be considered an export of “PPE medical coveralls for COVID-19″. The exporter can file the application again on the prescribed date and that will be considered for the quota of July.

DGFT clarified that, from August onwards, the exporter can file the applications for export of “PPE medical coveralls for Covid­19″ filed from 1st to 3rd day of each month and it will be considered for the quota of that month.

Note: Only one application per Import Export Code will be considered during the month.

The validity of Export Authorization/License

The validity of Export Authorization for the export of PPE Medical Coveralls for COVID-19 is 3 months from the date of the issue.

Eligibility Criteria for Issuance of Export License

As per the revised guidelines, the below-mentioned eligibility criteria are applicable for issuance of Export licenses:

  • Copy of Purchase order or Invoice
  • Chartered Engineer’s Certificate certifying that the fabrics used in the PPE medical coverall were manufactured in India
  • Copy of the Import Export Code  of the Firm
  • Certificate of Registration as Manufacture of PPE from the concerned Department
  • Copy of BIS Certificate for IS 17423: 2020 for coveralls for COVID-19 OR
  • Copy of Certificate for ISO 16603 Exposure level 3/16604 Exposure level 2 for Coveralls obtained from a National Accreditation Board for Certification Bodies (NABCB) accredited body or notified body of the importing country.

Note: All documents must be duly self – attested by the authorized person of the firm.

Procedure to get the license for Export of PPE Medical Coveralls for COVID-19

The exporter can obtain the Obtain Export Authorization of Non-SCOMET Restricted items by filing application via DGFT ‘s ECOM application module.  Once the DGFT accepted the license request, the export authorization for the shipment of PPE Medical Coveralls will be issued.

Know more about Procedure to Obtain Export Authorization of Non-SCOMET Restricted items

Other Conditions to Get Export License

  • All the relevant documents as specified above must be submitted along with the application to verify the eligibility criteria and to issue an export license.
  • Incomplete applications will not be considered for any allocation.
  • Any application received through email or submitted outside the timeline specified will not be considered for monthly quota.

The DGFT’s notification pertaining to the Revised Procedure and Criteria for Export of PPE Medical Coveralls for COVID-19 is attached below for reference.

Trade Notice 18

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Procedure and Criteria for Import of Power Tillers

Procedure and Criteria for Import of Power Tillers

The Directorate General of Foreign Trade (DGFT) has specified the Procedure and Criteria for Import of Power Tillers vide Notice No. 19/2015-2020. With this notification, the DGFT has amended the Import Policy of power tillers & its components and placed their imports in the restricted category from free earlier. Hence the importer needs to obtain import authorization from the Government for import of Power Tillers. The importer can apply for import authorization/license online through the new DGFT Platform under the Restricted Item category. The present article briefs the Procedure to obtain import license for the Import of Power Tillers,

The Gist of DGFT Notification

The Directorate General of Foreign Trade (DGFT) on July 15, 2020, issued two notifications related to the Amendment in import policy and policy conditions of import of Power tillers.

  • The DGFT has announced that the Power Tillers and its components are put in the restricted category, making it mandatory for importers to get a license from DGFT for import of the product.
  • As per the public notice, the DGFT also has prescribed Conditions and modalities for issuance of authorizations for import
  • The exporter can apply for import authorization as restricted items and exports are not required to forward any hard copy of the application via email or post to DGFT.

Conditions for issuance of Authorizations for Import of Power Tillers

As per the revised import policy, conditions for issuance of Authorizations for Import of Power Tillers are as follows:

  • As mentioned above, DGFT detailed the procedure for giving import licenses, as per which, the cumulative value of authorization issued to the company in a year should not exceed 10% of the value of power tillers imported during the past year (2019-2020) by that company. The cap of 10% also applies for components of power tillers.
  • To get the import authorization, the applicant should have been in the power tillers business for at least three years and should have sold a minimum of 100 power tillers in the past three years
  • The applicant should have the valid Type (Information and communication technology ) /batch test report from Central Farm Machinery Training & Testing Institute as well as emission test approval and Central Motor Vehicles Rules of the power tiller sought to be
  • The importer needs to have satisfactory and proven infrastructure for training, post-sales service and spare part to obtain an import license
  • Only manufacturers of Power Tiller are eligible for applying for an import authorization for import of Power Tiller and its components.
  • The Power Tiller which will be imported should meet all the specifications as notified under IS 13539 or higher than these specifications.

Import Policy of Power Tillers and its Components

A New Policy Condition is being added in Chapter 84 of ITC (HS), 2017 Schedule – I (import policy as follows:

  • Under HS code 84328020, the import is Free for all items except Power Tillers, Engines, Transmission, Chassis, and Ratavator forming parts of Power Tillers

Restricted Import of Power Tillers

Considering the demand for Power Tillers, the Government revised the import policy and allowed the imports of the following products with a license.

Sl.No

Export-Import (ExIm) code

Description

1

84328020

Rotary tiller

2

84329090

Other

Conditions for Power Tillers to get Import Authorization

Power tiller is the equipment used for the soil preparation; condition to obtain import authorization for such equipment is as follows:

  • The equipment may be walking behind or riding attachment type and should be capable of being coupled to a trailer that can be used for transportation of goods of above 1-ton capacity.
  • The maximum speed of the power tiller, when coupled with the trailer, should be below 22 Kmph.
  • To avail the import license, the minimum rated horsepower output of the power tiller engine should be above 8bhp (Brake Horse Power)

Eligibility Criteria to Obtain Import License

The firm applies for the import license should be the manufacture of power tiller and its components.

Documents Required for Import License

The importer needs to furnish the following documents to obtain import authorization for the import of power tiller and its components.

  • Certificate of Registration as Manufacture of power tiller from the concerned Department
  • Copy of the Import Export Code of the Firm
  • Copy of Purchase order or Invoice

Procedure to get Authorization for Import of Power Tillers

The applicant needs to access the new DGFT platform , and select the service tab from the main menu. The list of services will be displayed to select “Online ECOM Applicationâ€. The link will redirect to the new page.

Procedure and Criteria for Import of Power Tillers - Home Page
Procedure and Criteria for Import of Power Tillers – Home Page

Click on the Restricted Item (import) License, the application page will be displayed.

Procedure and Criteria for Import of Power Tillers - ECOM
Procedure and Criteria for Import of Power Tillers – ECOM

Enter Mobile Number or E-mail id and click on the get OTP button. Furnish the OTP received on the mobile or e-mail id and click on the SUBMIT button to proceed further. After the successful login Main Menu will appear.

Select the create a new ECOM option from the left side menu, a new form for Import of Restricted Item will appear on screen with some pre-filled details like (ECOM Ref Number, ECOM Date), etc

After providing the applicant details such as IEC details, click on the SAVE button to save the application.

Select the Import policy of Item to be imported as (Restricted) from the drop-down menu and provide the following details on the respective page.

  • Canalized Detail
  • Government Supply Detail
  • Import Item form details – Item Serial number is auto-generated.
  • Specify other details like ITCHS Code, Quantity, UOM of Quantity, CIF in Foreign Currency (FC), FC Type, Country of Origin, Purpose of Import (Actual / Trading), and Detail Justification
  • Select the Import type of item from the drop-down menu

Upload Document

Now click on the Upload Document button to upload your document with the application. Make sure all documents size should not exceed 5 MB each. All documents should be in pdf format only. In case total document size is more than 5 MB please send it to importlicence-dgft@nic.in mentioning the ECOM Reference Number and File Number and File Date.

Press the pay application fee as applicable by clicking on the PAY Fee button. Click on submit button you will be redirected to payment gateway to make your payment. After successful payment, click on the Print Application button to review the application details

Next, Select the DGFT RA office to submit your application from the drop-down menu. Now click on the SUBMIT Application button to submit your application.

Get License

Once the DGFT accepted the request, the import license for the shipment of PPE Medical Coveralls will be issued.

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Formation and Promotion of 10,000 Farmer Producer Organization (FPO) Scheme

Formation and Promotion of 10,000 Farmer Producer Organization (FPO) Scheme

The Ministry of Agriculture and Farmers Welfare released New Guidelines for the Farmer Producer Organization (FPO) as part of the Formation and Promotion of 10,000 Farmer Producer Organization (FPO) Scheme. As per the revised guidelines, FPOs can be registered either under the Companies Act, 2013, or under the Cooperative Societies Act of the States and handholding is to be done for five years by professionally managed Cluster-Based Business Organization (CBBOs). Besides, the Government also assists FPOs in the form of Equity Grant and Credit Guarantee Fund (CGF). The primary objective of the scheme is to provide effective capacity building to FPOs to develop agriculture entrepreneurship skills to become economically viable and self-sustainable. The current article briefs the New Guidelines for Farmer Producer Organization (FPO).

Farmer Producer Organization (FPO)

Farmer Producer Organization (FPO) is a legal entity incorporated under the Companies Act or Co-operative Societies Act of the concerned States and formed to leverage collectives through economies of scale in production and marketing of agricultural and allied sectors.

Formation and Promotion of 10,000 Farmer Producer Organization (FPO) Scheme

The objective of introducing the new guidelines for FPO under the Scheme is as follows:

  • To provide a holistic and broad-based supportive ecosystem to form new 10,000 FPOs to facilitate the development of vibrant and sustainable income-oriented farming
  • To enhance productivity through efficient, cost-effective and sustainable resource use and realize higher returns through better liquidity and market linkages for their produce and become sustainable through collective action
  • To provide handholding and support to new FPOs up to 5 years from the year of creation in all aspects of management of FPO, inputs, production, processing and value addition, market linkages, credit linkages and use of technology, etc

Benefits to Farmer

Through the formation of FPOs, farmers will have better collective strength for better access to quality input and technology.  The farmer will also avail better credit and better marketing access through economies of scale for better realization of income.

Activities to be undertaken by FPO

As per the new guidelines, the FPOs may provide and undertake the following relevant major services and activities for the development:

  • The FPO can supply quality production inputs like seed, fertilizer, pesticides at reasonably lower wholesale rates.
  • FPO can make available need-based production and post-production machinery and equipment on custom hiring basis for members to reduce the unit production cost
  • FPO can engage in the process of value addition like cleaning, grading, packing, and also farm level processing facilities at a user charge basis on a reasonably cheaper rate.
  • The FPO can make the facility for storage and transportation for its members
  • The FPO must undertake higher income-generating activities like seed production, beekeeping, mushroom cultivation, etc
  • FPO needs to undertake aggregation of smaller lots of farmer-members’ produce; add value to make them more marketable.
  • Facilitate logistics services such as storage, transportation, loading/unloading, etc. on a shared cost basis.
  • FPO can market the aggregated produce with better negotiation strength to the buyers and in the marketing with better and remunerative prices

Implementing Agencies to Form and Promote FPOs

The following three implementing Agencies will form and promote Farmer Producer Organizations

Note: States may also if so desire, nominate their Implementing Agency in consultation with the Department of Agriculture.

Cluster-Based Business Organizations (CBBOs)

The Department of Agriculture and Farmer Welfare will allocate Cluster to Implementing Agencies which in turn will form the Cluster-Based Business Organization in the States. FPOs will be formed and promoted through these Cluster-Based Business Organizations (CBBOs) and it will be a platform for an end to end knowledge for all issues in FPO promotion. The CBBOs will have five categories of specialists such as,

  • The domain of Crop husbandry
  • Agri marketing or Value addition and processing
  • Social mobilization
  • Law & Accounts and
  • IT/MIS.

Support by the National Project Management Agency (NPMA)

There will be a National Project Management Agency (NPMA) at SFAC for providing overall project guidance, data compilation, and maintenance of FPO through integrated portal and Information management and monitoring.

Members of FPO

Initially, the minimum number of members in FPO will be 300 in plain area and 100 in the North East and hilly areas. However, the Department of Agriculture and Farmers Welfare may revise the minimum number of membership-based on experience.

Priority for Aspirational Districts FPO

According to the new guidelines, priority will provide for the formation of FPOs in aspirational districts in India with at least one FPO in each block of aspirational districts. FPOs will be promoted under the “One District One Product†cluster to promote specialization and better processing, marketing, branding and export by FPOs.

Equity Grant for FPO

To strengthen the financial base of FPOs and help them to get credit from financial institutions for the projects and working capital requirements for business development, the Government is providing Equity Grant to FPO.

Objectives of Equity Grant

The objectives of providing Equity Grant to FPO are as follows:

  • To enhance the viability and sustainability of FPOs
  • To increase the creditworthiness of FPOs
  • To enhance the shareholding of members to increase the ownership and participation in the FPO.

Equity Grant Details

Equity Grant will be in the form of a matching grant up to Rs. 2000 per farmer member of FPO subject to a maximum limit of Rs. 15 lakh fixed per FPO.

Eligibility criteria of FPO

An FPO fulfilling the following criteria are eligible to apply for equity grant under the Formation and Promotion of 10,000 Farmer Producer Organization (FPO) Scheme

  • The FPO should be a legal entity as mentioned above
  • FPO has raised equity from its Members as laid down in its Articles of Association/ Bye-laws
  • Minimum 50% of the FPO’s shareholders are small, marginal, and landless tenant farmers and Women farmers’ as shareholders are to be preferred.
  • The maximum shareholding of the members should not be above 10% of the total equity of the FPO.
  • A farmer can be a member in more than one FPO with different produce clusters but he/she will be eligible only once for the matching equity grant up to his/her share.

Documents Required for Equity Grant

The following are the mandatory documents required to be submitted along with the application to get Equity Grant:

  • Shareholder List and Share Capital contribution by each member and it should be verified and certified by a Chartered Accountant (CA) or Co-operative Auditors
  • Resolution of the Board of Directors or Governing Body
  • Consent of shareholders
  • If the FPO is in operation for more than one financial year then it shall provide a copy of the Audited Financial Statements of FPO for all years of existence of the FPO, verified and certified by a Chartered Accountant (CA) or Cooperative Auditors
  • In case FPO is in operation for less than one financial year, Photocopy of Bank Account Statement for last six months authenticated by the Branch Manager of the “Bank†is required
  • Business Plan of FPO and budget for the next 18 months
  • Names, photographs, and identity proof (ration card, Aadhaar card, election identification card or passport) of Representatives/ Directors authorized by the Board

Application Procedure

Eligible FPOs shall apply for the Equity Grant in the prescribed Application Form to the Implementing Agencies. After the application of due diligence by Implementing Agencies, the proposal may be approved for the sanction of Equity Grant.

English FPO Scheme Guidelines FINAL_0-54-56

The Implementing Agency will make a demand for funds for disbursement under the Scheme as per their Annual Action Plan (AAP) to DAC&FW.

After accepting the terms of sanction, the FPO shall enter into Agreement with Implementing Agencies and implementing Agencies shall transfer sanctioned funds to the FPO Account.

Credit Guarantee Facility to FPO

The Government is providing credit guarantee cover to accelerate the flow of institutional credit to FPOs by minimizing the risk of financial institutions for granting loans to FPOs and to improve their financial ability to execute better business plans leading increased profits.

The objective of the Credit Guarantee Facility

The primary objective of CGF is to provide a Credit Guarantee Cover to Eligible Lending Institution (ELI) to enable them to provide collateral-free credit to Farmer Producer Organizations by minimizing the lending risks in respect of loans.

Eligibility Criteria

An ELI can avail Credit Guarantee for the FPO or Federation of FPOs, which are covered under the Scheme. Further, it should be ensured that the ELI has sanctioned within six months of the date of application for the Guarantee.

Eligible project loan amount for Credit Guarantee Cover

The credit guarantee cover per FPO will be limited to the project loan of Rs. 2 Crores.

Sl.No

Project Loan

Credit Guarantee Cover

1

Up to Rs. 1 crore 85% of bankable project loans with a ceiling of Rs. 85 lakh

2

Above Rs.1 crore and up to Rs. 2 Crores 75% of bankable project loan with a maximum ceiling of Rs. 150 lakh

3

Over Rs. 2 Crores of bankable project loan Maximum up to Rs.2.0 crore only

Other Condition

  •  ELI shall be eligible to seek Credit Guarantee Cover for a single FPO borrower for a maximum of 2 times over 5 years.
  • In case of default, claims will be settled up to 85% or 75 % of the amount in default subject to maximum cover.
  • Other charges such as penal interest, commitment charge, service charge, or any other expenses, debited to the account of FPO by the ELI other than the contracted interest shall not qualify for Credit Guarantee Cover.
  •  The Credit Guarantee Cover will only be granted after the ELI agrees with NABARD or NCDC and shall be granted or delivered following the Terms and Conditions.

Procedure to avail Guarantee Cover

The Eligible Lending Institutions need to apply to NABARD or NCDC for Guarantee Cover in the specified form for credit proposals sanctioned by them during any quarter before the expiry of the following quarter viz., application concerning credit facility sanctioned in April–June Quarter must be submitted by the ensuing quarter, that is, July-September to qualify under the Scheme.

English FPO Scheme Guidelines FINAL_0-61-64

Loan to FPO

States or union territories will be allowed to avail loan at prescribed concessional rate of interest under Agri-Market Infrastructure Fund (AMIF) approved for setting up in NABARD for developing agriculture marketing and allied infrastructure in Gramin Agriculture Markets, by marketing and allied infrastructure including Common Facilitation Centre / Custom Hiring Centre for FPOs as the eligible category for assisting States / UTs.

Training and Capacity Building for Promotion of FPOs

CBBOs will provide adequate training and handholding to FPO. Professional training of Board of Directors, CEO, Accountant of FPOs will be provided in organizational training, resource planning, accounting, management, marketing, processing in reputed National / Regional training Institutes.

 

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E-Form PAS-6

E-Form PAS-6

Form PAS-6 is a ‘Reconciliation of Share Capital Audit Report’ which is to be submitted by the unlisted public company on a half-yearly basis. The provisions relating to filing of Form PAS-6 is covered in rule 9A (8) of the Companies (Prospectus and Allotment of Securities) Rules, 2014.

Noticeably, Form PAS-6 shall now be available for filing as e-Form from 15th July 2020. The present article decodes the various provisions and aspects of Form PAS-6.

Filing requirement of Form PAS-6

Every unlisted public company covered within the ambit of rule 9A of the Companies (Prospectus and Allotment of Securities) Rules, 2014 are required to file a ‘Reconciliation of Share Capital Audit Report’ in Form PAS-6.

Due date for filing of Form PAS-6 and extended

Every unlisted public company shall submit a ‘Reconciliation of Share Capital Audit Report’ in Form PAS-6 within a period of 60 days from the conclusion of each half-year. Accordingly, the due dates for filing of the Form shall be-

Particulars Due date
For half-year ending on 30th September On or before 29th November
For half-year ending on 31st March On or before 30th May

Vide the General Circular No. 16/2019 dated 28th November 2019, the Ministry of Corporate Affairs had earlier extended the time limit for filing Form PAS-6 for half-year ending 30th September 2019 to 60 days from the date of deployment of the relevant Form PAS-6 on the website.

However, the Form PAS-6 is first time deployed on the website on 15th July 2020. Accordingly, as per the General Circular No. 16/2019, the due date for filing Form PAS-6 is 12th September 2020.

Additionally, as a measure of COVID-19 relief, the Ministry of Corporate Affairs, vide General Circular No. 11/2020 dated 24th March 2020, has announced that no additional fees shall be charged/ chargeable for any late filing during the moratorium period from 1st April 2020 to 30th September 2020.

Concluding thereby, the due date for filing Form PAS-6 for both the half-year ending 30th September 2019 and 31st March 2020 shall be 30th September 2020.

Other important points

  1. Provisions of rule 9A of the Companies (Prospectus and Allotment of Securities) Rules, 2014 doesn’t apply to a Nidhi Company, a Government Company, and a Wholly Owned Subsidiary.
  2. The Reconciliation of Share Capital Audit Report in Form PAS-6 is to be filed twice in a year, on a half-yearly basis, for each ISIN (i.e., International Security Identification Number).
  3. E-form PAS-6 is to be signed by either the Director or Manager or CEO or CFO of the company. It should be noted that the disqualified director is not allowed to sign the e-form.
  4. The form is to be signed and certified by the practicing professional i.e., Chartered Accountant in practice or Company Secretary in practice.
  5. Vital details to be provided in Form PAS-6 are-
    1. Details of the capital of the company.
    2. Details of changes/ amendment in share capital during the half-year.
    3. Details of shares held by Directors, Promoters, and KMP.
    4. Details of the company secretary of the company.
    5. Details of the practicing professional certifying the Form.

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Form GSTR-4 Due Date Extension

Form GSTR-4 Due Date Extension

Form GSTR-4 is a quarterly GST return that must be filed by a person enrolled under the GST Composition Scheme. The time limit to file GSTR-4 annual returns for the financial year 2019-2020 had been extended till July 15, 2020, on April 3, 2020. After the extension announced there were several representations for further extension of form GSTR-4 due dates. Considering this, The Central Board of Indirect Taxes and Customs (CBIC) extends the due date for filing form GSTR-4 till August 31, 2020.

otification

The Central Board of Indirect Taxes and Customs (CBIC) vide its notification No. 59/2020-Central Tax dated 13.07.2020 extends the due date of filing form GSTR-4 till August 31, 2020, by amending the Notification No. 21/2019- Central Tax dated April 23, 2019. This notification specifies the guidelines for registered persons paying taxes under Section 10 of the Central Goods and Service Tax Act, 2017, which is related to composition levy.

For extension, CBIC amends the first provision of the third paragraph of the said Notification, to extend the due date of Form GSTR-4 till “August 31, 2020†instead of “July 15, 2020â€.

GSTR- 4 Filing – Annual Return for Composition Scheme

GSTR-4 is an annual return that must be filed by those enrolled under the GST Composition Scheme. Businesses registered under the GST Composition Scheme, are required to file one return every year and pay a flat GST tax based on the sales turnover. Not all businesses entities can be registered under the GST composition scheme. Only entities with an annual turnover of less than Rs.1.5 crore and satisfying other criteria can be enrolled under the Composition Scheme.

GST Composition Scheme

The GST composition scheme is designed to help small taxpayers having a turnover of up to Rs.1.5 crore per annum (North-Eastern states and Himachal Pradesh, the limit is Rs.75 lakh.) with a simple GST compliance mechanism. Entities registered under the GST composition scheme will be able to pay tax at prescribed rates and file GST returns.

Service providers are not eligible to be enrolled under the GST composition scheme, expect for restaurant service providers.

Under the scheme, manufacturers and traders are needed to pay GST at 1 percent, while it is 5 percent for restaurant service providers (which do not serve alcohol).

Form GSTR-4 Return Filing

To help taxpayers to file GSTR-4 return offline, Goods and Service Tax Network (GSTN) provides the Excel-based GSTR 4 Offline Utility. Taxpayers can file form GSTR-4 return by uploading the JSON file generated from the Offline utility to the GST portal.

Know more about Form GSTR-4 Return Filing

FORM GST CMP-08

The composition scheme taxpayers also need to file a self-assessed tax return in a one-page statement, i.e. Form GST CMP 08 as per the Central Goods and Service Tax Rules, 2017. The taxpayer needs to file this quarterly return by the 18th day of the month.

Penalty for GSTR-4 Late Filings

A late fee of Rs.200 per day will be levied if the form GSTR- 4 is not filed within the due date. The maximum late fee should not exceed Rs. 5,000.

The CBIC’s notification pertaining to the Form GSTR-4 Due Date Extension is attached below for reference.

notfctn-59-central-tax-english-2020

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