Engineering exporters, shipping companies in India suffer increased costs under GST
The Engineering Export Promotion Council of India (EEPC) has reported increased costs for shipping companies under the Goods and Services Tax (GST) regime due to changes to the refund schedule and roll back of tariff incentives.
Under the GST, drawback refunds will not be released till the end of September or October. Further, supplies of goods to export oriented units (EoU) from domestic tariff area are no longer considered as ‘deemed exports’; shippers will not be allowed to import inputs without payment of duty under Advance Authorization.
Resolving the sector’s grievances is necessary: the export of engineering goods accounts for the biggest share in India’s total export basket; they are vital for job creation, particularly in small and medium enterprises.
India is world’s third-biggest beef exporter
In their latest report – Agricultural Outlook 2017-2026, the Food and Agriculture Organisation (FAO) and the Organisation for Economic Cooperation (OECD) establish that India is the world’s third-biggest exporter of beef, and will stay so for the next decade.
Although not specified in the report, beef exports from India appears to be mostly from buffaloes.
India exported 1.56 million tons of beef in 2016 while total world beef exports amounted to 10.95 million tons. India is expected to account for 16 percent of global exports by 2026.
Brazil followed by Australia are ranked as the world’s top beef exporters.
India’s digital economy continues to expand: e-commerce, digital payments, fintech services
According the government, India’s e-commerce market touched an estimated US$33 billion in the fiscal year 2016-17, registering a 19 percent growth.
Meanwhile, India has been categorized in the ‘break out’ segment of the Digital Evolution Index 2017 that tracks the digital economy of countries. The index, jointly released by the Fletcher School at Tufts University and Mastercard, notes that India is attractive for investors despite lower levels of digital advancement.
This is because of its rapidly evolving digital payments ecosystem, which was catalyzed by the government’s demonetization decision last November. The government has also sought greater acceptance of cashless payments through economic programs, reforms, and improving infrastructure, thereby, creating a positive environment for the online payments industry.
This has directly fed into the proliferation of startups in India’s financial technology sector: more than 600 new enterprises have emerged in the field of lending, payments, insurance, and trading. Altogether, India’s fintech software services market stands at US$8 billion, and is expected to grow to about US$14 billion by 2020 as per the Niti Aayog CEO Amitabh Kant.
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The third edition of Tax, Accounting and Audit in India is updated for 2017, and provides an overview of the fundamentals of India’s tax, accounting, and audit regime. The guide also includes a detailed introduction of the Goods and Services Tax (GST) that was launched on July 1, 2017, representing the complete transformation of India’s indirect taxation structure.
In this issue of India Briefing Magazine, we discuss payroll processing and reporting in India, and the various regulations and tax norms that impact salary and wage computation. Further, we explain India’s complex social security system and gratuity law, and how it applies to companies. Finally, we describe the importance of IT infrastructure, compliance, and confidentiality when processing payroll in India.