Registrations are open for November 2021 Test Series | Contact us for any query 9988483167 | 7888634515


CA Test Series Logo
CA Test Series Register Here CA Test Series Whatsapp Contact
CA Final Indirect Tax Amendments for November 2020 ICAI Exams

CA Final Indirect Tax Amendments for November 2020 ICAI Exams

Amendments in CA Final Indirect tax are quite important from an examination point of view. Related to previous attempts, there are only a few amendments in CA Final Indirect tax for November 2020.

The first amendment in CA Final IDT is regarding Custom which is released between 1st November to 30th April 2020. Amendments for May 2020 and new amendments for November 2020 will be applying to Nov ICAI Exams.

 

Amendment 1 – valuation of Goods

CBIC issued a circular on 5th Feb 2020 with regards to the valuation of Second Hand Machinery

The following guidelines shall be followed:

Option-1: Import goods accompanied with overseas Chartered Engineer (or equivalent) [Report -Form A] --

(a) All imports of second-hand machinery or used capital goods will be ordinarily accompanied by an inspection or appraisement report issued by an overseas Chartered Engineer or equivalent, prepared upon examination of the goods at the place of sale.

(b) The report of the overseas chartered engineer or equivalent should be as per Form A.

 

 

Option-2: Post arrival, get inspected by Indian Chartered Engineer [Report- Form B] and submit a report for seeking customs clearance

(c) In the event of the importer failing to procure an overseas report of inspection or appraisement of the goods, he may have the goods inspected by any one of the chartered Engineers empaneled locally by the respective Custom Houses.

 

(d) In cases where the report is to be prepared by the Chartered Engineers empaneled by Custom Houses, the same will be in Form B.

Acceptance/Rejection of declared value by PO —

- first PO shall examine the accuracy/ truthfulness of declared value by comparing it concerning Accontant Report and also to Depreciated Value as notified in Circular issued in 1987

 

- Then final decision (as to acceptance/ rejection of declared value) shall be taken by PO

 

(e) The value declared by the importer shall be examined in the report of the Chartered Accountant.

Similarly, the declared value shall be examined to the depreciated value of the goods determined in terms of the Circular dated November 19, 1987.

  • If such comparison does not create any doubt regarding the declared value of the goods, the same may be appraised (assessed) under rule 3 of the Customs Valuation Rules, 2007.
  • If significant differences are arising from such comparison, Rule 12 of the Customs Valuation Rules, 2007 requires that the proper officer shall seek an explanation from the importer justifying the declared value.

 

The proper officer may then evaluate the evidence put forth by the importer and after giving due consideration to factors such as depreciation, refurbishment or reconditioning (if any), and condition of the goods, determine whether the declared transaction value conforms to Rule 3 of Customs

 

Valuation Rules, 2007. Otherwise, the proper officer may proceed to determine the value of the goods, sequentially, in terms of rules 4 to 9.

 

 

Amendment 2 – FTP has been extended by 1 more year due to COVID-19

 

REWARD SCHEME – As per Circular on 10th Jan 2020, the Social welfare surcharge (SWS) cannot be paid by utilizing MEIS / SEIS Scrip

 

SWS is levied as per Sec 110 of FA, 2018. AS per Sec 110, SWS is levied and collected, on goods imported into India, as a duty of customs on goods specified in the First Schedule to the Customs Tariff Act, 1975.

 

The duty credit scrips issued under the Schemes such as MEIS, SEIS, etc are granted as rewards/ incentives for exporters under the respective FTP.

As per para 3.03of the FTP 2015-20, these scrips can be used for payment of Basic Customs Duty and Additional Customs Duty specified u/Sec 3(1), (3), and (5) of the Customs Tariff Act, 1975 for the import of inputs or goods. The relevant customs exemption notifications also allow debit of basic customs and additional duties of customs in the duty credit script. It is to mention that the debit of SWS through duty credit scrip is not envisaged in the FTP and the exemption notifications.

 

SWS cannot be paid through MEIS/ SEIS — shall be collected in CASH

It is clarified that SWS is not exempted and has to be levied and collected on the imported goods.

SWS cannot be debited through duty credit scrips and therefore has to be paid by the importer in cash.

 

 

Amendment 3 – Export Promotion Scheme

 

Imports against AA/ EPCG Authorization – Exemption to IGST and GST cess extended to 31st March 2021

 

Amendment 4 – EU Scheme

 

Imports by 100% EU – Exemption to IGST and GST cess extended to 31st March 2021

 

More amendments in the GST part will be shared in the next few days. Keep following us for amendment updates

 

Related:

CA Inter Updated chapterwise Weightage of Each Subject'
CA Inter Updated chapterwise Weightage of Each Subject

CA Inter latest updated chapter wise weightage for all subjects of group 1 and group 2. This weighta...

Read more
CA Inter Amendments For May 2020'
CA Inter Amendments For May 2020

With the constant changes happening in law it is very important for ca students to be in line and ke...

Read more
Check CA Inter IPCC result of May/July 2021 | Latest Update'
Check CA Inter IPCC result of May/July 2021 | Latest Update

CA Intermediate and IPCC result of May/July 2021 of the exams conducted in the month of July will ex...

Read more
CA Intermediate Latest Study Material for Nov 2021'
CA Intermediate Latest Study Material for Nov 2021

CA inter subject wise study material for both groups 1 and 2 and start preparing for CA inter exams,...

Read more
How to Get Rank in CA Final Examination 2021
How to Get Rank in CA Final Examination 2021

Know-How to get a Rank in CA Final Examination. Read this blog to find out what should be the study...

Read more
CA Final Pass Percentage 2021, 2020,2019, 2018 for Old & New Course
CA Final Pass Percentage 2021, 2020,2019, 2018 for Old & New Course

CA Final Pass Percentage 2021 for Old, New Course - ICAI has announced CA Final pass percentage and ...

Read more
CA Foundation July 2021  question paper
CA Foundation July 2021 question paper

Discuss & review of CA Foundation July 2021 question paper and suggestions for improvement to gettin...

Read more
CA Foundation Registration 2021 - Registration, Eligibility, Syllabus, Exam Pattern
CA Foundation Registration 2021 - Registration, Eligibility, Syllabus, Exam Pattern

CA Foundation Registration 2021 - Check out the complete detailed on CA foundation exam registratio...

Read more