By Tarun Ghia, Kevin Shah, Brijesh Cholera Chartered Accountants
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This Notification provides exemption to taxable services provided or agreed to be provided against Merchandise Exports from India Scheme [MEIS] duty credit scrip issued to an exporter by the Regional Authority in accordance with paragraph 3.04 read with paragraph 3.05 of the Foreign Trade Policy.
The exemption can be availed if following conditions are complied:
1. T he duty credit in the said scrip is issued against –
a. exports of notified goods or products to notified markets as listed in Appendix 3B of Appendices and Aayat Niryat Forms of Foreign Trade Policy 2015-2020 ;
b. exports of notified goods or products transacted through e-commerce platform as listed in Appendix 3C of Appendices and Aayat Niryat Forms of Foreign Trade Policy 2015-2020. In such cases the maximum free on board value, for calculation of duty credit amount, shall not exceed Rs. 25,000 per consignment.
2. The export categories or sectors specified in paragraph 3.06 of the Foreign Trade Policy and listed in Table annexed to Notification 24/2012 – CUS (N.T.) dated 08.04.2015 shall not be counted for calculation of export performance or for computation of entitlement under the Scheme.
3. T he imports and exports are undertaken through the seaports, airports or through the inland container depots or through the land customs stations as mentioned in the Table 2 annexed to the Notification 16/2015- CUS (N.T.) dated 01.04.2015 or a Special Economic Zone notified under section 4 of the Special Economic Zones Act, 2005 (28 of 2005)
4. Accordingly, the person claiming exemption benefit should be registered with the customs authorities and should provide services in the taxable territory.
5. The benefit of the script would be given after taking into consideration the benefit already availed under Notification 24/2012.
6. T he holder of the scrip presents the scrip debited by the said Customs Authority within thirty days to the said Officer, along with an undertaking addressed to the said Officer, that in case of any service tax short debited in the scrip, he shall pay such service tax along with applicable interest, based on which the officer shall verify and validate.
7. T he said holder of the scrip, shall be entitled to avail drawback or CENVAT credit of the service tax so paid by way of debiting the duty scrip duly validated by the said Officer.
