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26/03/2018 04:21pm

Exemption from Integrated Tax and Compensation Cess under Advance Authorization Scheme and EPCG Scheme till 1st Oct, 2018

image Exemption from Integrated Tax and Compensation Cess under Advance Authorization Scheme and EPCG Scheme till 1st Oct, 2018

New Delhi, Mar 26 (KNN) Ministry of Commerce and Industry has extended the exemption from Integrated Tax and Compensation Cess under Advance Authorization Scheme and EPCG Scheme till 1st Oct, 2018.

In an official notification, Directorate General of Foreign Trade stated “exemption from Integrated Tax and Compensation Cess under Advance Authorization Scheme under Para 4.14 of FTP 2015-20 is extended up-to 01.10.2018.”

Further as per the notification“exemption from Integrated Tax and Compensation Cess under EPCG Scheme under Para 5.01 (a) of FTP 2015-20 is extended up-to 01.10.2018.”

According to Para 4.14 of Foreign Trade Policy, 2015-20 “Imports under Advance Authorization are exempted from payment of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Countervailing Duty, Safeguard Duty, Transition Product Specific Safeguard Duty, wherever applicable.

Further, Import against supplies covered under paragraph 7.02 (c), (d) and (g) of FTP will not be exempted from payment of applicable Anti-dumping Duty, Countervailing Duty, Safeguard Duty and Transition Product Specific Safeguard Duty, if any.

However, imports under Advance Authorization for physical exports are also exempt from whole of the integrated tax and Compensation Cess levied under sub-section (7) and sub-section (9) respectively, of section 3 of the Customs Tariff Act, 1975 (51 of 1975), as may be provided in the notification issued by Department of Revenue, and such imports shall be subject to pre-import condition.

According to 5.01 (a) “EPCG Scheme allows import of capital goods for pre-production, production and post-production at Zero customs duty. Capital goods imported under EPCG scheme for physical exports are also exempt from whole of the Integrated Tax and Compensation Cess levied thereon under the subsection( 7) and subsection (9) respectively, of section 3 of the Customs Tariff Act, 1975( 51 of 1975), as may be provided in the notification issued under Department of Revenue.

Alternatively, the Authorization holder may also procure Capital Goods from indigenous sources in accordance with provisions of paragraph 5.07 of FTP. Capital goods for the purpose of the EPCG scheme shall include Capital Goods as defined in Chapter 9 including in CKD/SKD condition thereof; Computer software systems; Spares, moulds, dies, jigs, fixtures, tools & re-factories for initial lining and spare re-factories; and Catalysts for initial charge plus one subsequent Charge." (With PIB inputs)

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