Sales Tax Instructions

Sales Tax Instructions, 2009
3. If the fabric imported under DTRE
rules by an exporter is the property of
foreign buyer, and afterwards the
foreign buyer cancelled the order and
instructed to send back the fabric, then
how can an exporter re-export the
fabric without any process on it.
Re-export of input goods shall be
allowed only if the input goods are
owned by the foreign buyer subject
to the conditions laid down under the
Export Policy and Procedure Order
and payment of surcharge, if due
under rule 298. However, where
input goods are being re-exported
under ‗force majure‘ conditions,
Collectors may examine the facts
and circumstances of the case and
send their specific recommendations
for waiver of surcharge by CBR.
4. From the history it is apparent that
textile-processing industries usually
endure more than 30% rework cost in
the form of chemical and dyes and
cause to absorb chemical and dyes
more than the predefined ratios in
Appendix 1, the questions is that is any
section of referred DTRE rules talk
about such wastage.
Input-output ratios to be declared in
DTRE application for DTRE
approval needs to be as realistic as
possible and there is no bar in the
rules to take into account both
visible and invisible wastages. In
case of dyes and chemicals,
absorption is the part of input
utilization for working out inputoutput
ratios. The exporters are,
therefore, required to give
approximate input-output ratios and
anticipated wastages. The same are,
however, accountable in the
reconciliation statement as already
clarified in CBR‘s letter C.
No.4(8)TEPI/2001, dated 7 th April,
2003.