SBS-Design-of-I-7th-Edition

#7 10/17 SBS ‘’UPDATESCOVERED:1.Relaxationfrom Bond

Relaxationfrom FilingofBondforExporters&SEZSuppliers -ContributedbyCASriHarsha&CAManindarBriefofUpdate: Thisupdatepertainstoreleaseofnotificationsand circularregarding providing relaxation from furnishingofbondforallexportersandsupplierstoSEZs.Thesummaryofthenotification andcircularisasunder: TheCBEC hasissuedaNotificationNo37/2017–CTandCircular8/8/2017-GSTdated4thOct, 17regardingfurnishingofLetterofUndertaking(LUT)insteadofBond. Earlier,onlycertainclassofexportersand exporterswithcertainturnovercriterionwere al- lowedtofurnishLUTinsteadofbondalongwithbankguaranteeforexportofgoodsorservices outsideIndiaortoaSEZunitordeveloper.Now,everyexporterandsuppliertoSEZhavebeen giventhefacilitytofileLUTinsteadofbond.HighlightsofNotification37/2017: 1.EveryexportercanfurnishLUTinsteadofbond. 2.RegisteredpersonswhohavebeenprosecutedforanyoffenceunderCGSTorIGSTorany otherlaw inforceinacasewheretaxevadedexceedsRs2.5lakhshavetofileBondand notallowedtofileLUT 3.The facilityofLUTinstead ofbond hasbeenextended inrespectofzero rated supplyof goodsorservicestoSEZunitordeveloperalso. 4.LUTshallbefiledonletterheadinduplicateforafinancialyearasprovidedinRule96A in RFD-11andtobeexecutedbyworkingpartner/MD/CS/authorisedpersonHighlightsofCircular8/8/2017: 1.Therewerenumerouscircularsprovidingclarityontheaspectsofbond/LUT.Allsuchcirculars havebeenrescindedinlightofCircular8/8/17. 2.Asstatedearlier,requirementofstatusholderorminimum exportturnoverof1crorehas beenrescindedandfacilityoffilingLUThasbeenallowedtoallregisteredexportersexcept thosefacingprosecution. 3.Ifthegoods/servicesarenotexportedinthetimeframeprovidedinRule96A(a)/(b),then facilityofLUTshallbewithdrawnforsuchperiodduringwhichtheexportsarenotbeingcom- pliedwith. 4.The documentrequired forLUTisonlya self–declarationthatthere are no prosecutions pendingontheregisteredpersonswhichmakeshim ineligibleforfurnishingofLUTinsteadof bond. 5.TheLUThastobeacceptedbyauthoritieswithin3workingdaysfrom thedateofreceipt.If notacceptedwithin3workingdays,itisdeemedthattheLUThasbeengranted. 6.Thebond,wheneverapplicableshallbefurnishedonnon-judicialstamppaperofthevalue asapplicableinthestateinwhichthebondisrequiredtobefurnished. 7.Thebondshallbearunningbondcoveringthetaxamountonexports.Exportershallensure thetaxamountisalwayslowerthanthebondamount.TheupdatesarecontributedbyCASriHarsha,CAManindarTheyarePartnersatSBSandCompanyLLP.Reachthem at [email protected] [email protected]

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