We are Manufacturer-Exporter of Cotton Yarn. We received advance amount against exports but due to COVID-19, orders of our overseas buyer got canceled by their buyer. They have requested us to refund the advance amount. We approached RBI to allow remittance of advances received through our bankers, but RBI did not grant it even after a lapse of five months. Please guide us.
I believe that you have approached RBI in accordance with the provisions of Para C.2 of RBI Master Direction No. 16/2015-16 dated January 1, 2016 (amended) which states that the advance payment will be received by the exporter. Shipment, in whole or in part, shall be made within one year from the date, without remittance, after the expiry of the said period of one year, for refund of unutilized portion of advance payment or for payment of interest. Prior approval of Reserve Bank.
If so, please contact the jurisdictional Regional Office of the Reserve Bank of India by phone or in person and follow up with your request for permission. Normally, RBI responds to such requests in about two to three weeks.
We have got permission for private bonded warehouse. To import into a private bonded warehouse, we have to obtain a space availability certificate from the customs authorities of the jurisdiction and present the same at the time of filing the bill of entry for warehousing. Until recently, the customs officers of the jurisdiction used to issue space availability certificates. Now they have stopped it and are asking us for notification or circular number regarding issuance of certificate. can you help us?
The requirement of production of space availability certificate for clearance of goods to be deposited in bonded warehouse has been done away with. Please refer to para 5(g) of CBEC circular no. 19/2018-Customs dated the 18th June, 2018, and CBIC Circular No. 10/2020-Customs dated 7th February, 2020.
The Government vide Notification No. 14/2022-Central Tax dated 5th July, 2022 added a new clause (d) in Explanation 1 to Rule 43 of the CGST Rules, 2017. The effect is that the total value of exempt supplies for the purpose of determination shall not include the value of supply of duty credit scrips in the restricted ITC. Thus, normal ITC will not be restricted on account of exempted supply of duty credit scrip. Will this amendment have a retrospective effect?
Notification No. 14/2022-CT operates with prospective effect. However, it is to be noted that Explanation 1 begins with the words, “For the purposes of rule 42 and this rule, it is hereby clarified that the aggregate value of the exempted supply shall be excluded”. Therefore, the effective amendment is part of that explanatory provision.
Since all the clarifications have retrospective effect, I believe that the said amendment will be effective from October 13, 2017, when duty credit scrip was exempted. Hence, if you have done so reversed, you can claim refund/re-benefits of restricted ITC.
Business Standard has always worked hard to provide updated information and commentary on events that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even during these difficult times arising out of COVID-19, we are committed to keeping you informed and updated with relevant news, authoritative views and sharp comments on relevant relevant issues.
However, we have a request.
As we grapple with the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. Subscribing to more of our online content can only help us achieve our goals of providing you with better and more relevant content. We believe in independent, unbiased and credible journalism. Your support through more subscriptions can help us practice the journalism we’re committed to.
support quality journalism and Subscribe to Business Standard,