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Chamber News
Interactive Session on Customs,
Excise & Service Tax
The Varanasi Branch organized an interactive session on In his response, Biswajit Datta said that it would not be
the topic “Custom Excise and Service Tax” in possible to touch all points raised by the participants but a
collaboration with Eastern U.P. Exporters' Association broad line of the rules and procedures can be presented.
(EUPEA), Ramnagar Industrial Association and Institute of
He said that the issue of Service Tax has been very
Chartered Accountants of India, Varanasi Branch on 3
thoroughly considered by the Government. One of the
March 2011. Biswajit Datta, Chief Commissioner, was
most important things of relief is that customs is also
the Chief Guest and key-note speaker. It may be going under self assessment. At present GST is being
mentioned here that Datta's jurisdiction as Chief
levied at central/state as well as local level. Under the
Commissioner, Custom, Excise and Service Tax covers
new provisions, all these taxes viz., VAT, CST, Entry tax
U.P., Bihar and Orissa.
shall be merged in one GST.
Chairman IACC-Varanasi C.A. Mukul Kumar Shah To the suggestion of the exporters, the Chief
welcomed Datta and senior officers of Custom, Excise
Commissioner agreed to forward his recommendation to
and Service Tax Department of Varanasi. Ahsan Khan
start cargo facilities from the Varanasi Babatpur Airport.
and Arun Kumar Agrawal, both Vice Chairmen, IACC-
Varanasi, Bholanath Baranwal, President, Eastern U.P. The new concept of zero rating has also been devised for
Exporters' Association, R.K. Chaudhary, President, exporters. This means that no tax will be exported and all
Ramnagar Industrial Association and Brijesh Kumar taxes paid by an exported shall be reimbursed after
Jaiswal, President, Institute of Chartered Accountants of producing required documents.
India, Varanasi Branch were also present on this Datta assured the participants that issues and
occasion. Sahil Garg, Member, Managing Committee,
memorandum submitted shall be seriously considered at
IACC Varanasi introduced the Chief Guest to the the highest level and the department shall come out with
participants.
a solution satisfactory to the concerned exporter.
Importers and exporters of carpets, handicrafts, silk
After Datta's address, a brief but lively question-answer
stressed on the need to import raw materials. Many times
session, moderated by Debashis Mukherjee followed.
samples of silk/woolen yarn, necessary spare parts for
machines, expensive dyes, decorative accoutrements IACC-Varanasi Vice Chairman Arun Kumar Agrawal
need to be imported in fairly small quantities.
thanked Datta, officers from Customs, Excise and Service
VAT and state border crossing formalities coupled with
other such issued burden the small exporter. Since
Varanasi airport already have international flights of big
airlines along with personnel and required building, the
clearance of such cargo can be started at Varanasi
airport. This facility shall enable exporter/importer
directly with their counterpart at international level.
Tax from Varanasi, the participants and media.
Then there is another serious problem pertaining to the
reimbursement of drawback to exporters. As a policy
matter, this payment should be made to exporter within a
period of one month but in practice this is not being done.
Similar is the case with Service Tax. As per the statute, an
exporter can claim service tax but majority of exporters
are not claiming the same because of lengthy formalities
even for small amounts. It would be a welcome step if
waiver of service tax can be done for exporters.
Chief Guest addressing the participants; (L to R) R.K.
Chaudhary, Bholanath Baranwal, CA Mukul Kumar Shah,
Biswajit Datta and Chief Guest, Manoj Nigam.
- INDO US BUSINESS May-June 2011
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