CBEC announces new Drawback Duty rates
Recently, the Central Board of Excise and Customs (CBEC) announced new drawback duty rates. Drawback duty is a provision that allows for the refund of customs and excise duties paid on the imported raw material used in the manufacturing of export goods.
Post July 1, 2017, exporters in India were briefly allowed to claim a higher rate of drawback duty on exported items. This was to facilitate an easy transition to the Goods and Services Tax (GST) system.
However, this relaxation will be available only until September 30, 2017, and subject to the condition that exporters submit a certificate declaring that no Input Tax Credit (ITC) of CGST/IGST has been claimed on imports.
After September 30, 2017, the GST paid on inputs of exported goods will not be covered under the drawback duty provision under the Customs Act of 1962. Instead, it will have to be claimed as refund under provisions in GST law.
Important Aadhar ID linkage deadlines
Aadhaar is now a mandatory proof of identity in India. It is a twelve-digit unique identification number based on biometric and demographic data, and is issued to all individuals residing in India, regardless of citizenship.
The biometric unique Aadhaar ID is now required in all financial matters – banking, PAN, and filing taxes, and to avail benefits under any government scheme. Aadhaar must also be linked to all other identification credentials such as driving licenses, mobile numbers, and email address. If these credentials are not linked by the deadline, they may become void.
The government has updated the deadlines for this linking:
- Deadline to link Aadhaar with PAN – December 31, 2017
- Deadline to link Aadhaar with mobile SIM – February 2018
- Deadline to submit Aadhaar details to banks and financial institutions – December 31, 2017
- Deadline to link mutual fund investments to Aadhaar – December 31, 2017
- Deadline to give Aadhaar details to avail social security schemes – December 31, 2017
India’s states to be ranked on startup infrastructure
The Department for Industrial Policy and Promotion (DIPP) will facilitate the process of ranking India’s states and union territories (UTs) according to their initiatives to support startups.
This assessment will be conducted by a third party, and will be based on parameters promoting entrepreneurship and the overall startup ecosystem in that state/UT.
Currently, the DIPP is framing the assessment parameters. This includes: a startup policy, startup cell, website portal, network of mentors, participation in the public procurement process, number of incubators and accelerators, funding support, and tax incentives.
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An Introduction to Doing Business in India 2017 is designed to introduce the fundamentals of investing in India. As such, this comprehensive guide is ideal not only for businesses looking to enter the Indian market, but also for companies who already have a presence here and want to stay up-to-date with the most recent and relevant policy changes.
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