जीएसटी विधेयक राष्ट्रपतींनी केले पास ......

राष्ट्रपती प्रणव मुखर्जी यांनी वस्तू व सेवा कर विधेयक लागू करण्यासाठीच्या १२२व्या घटनादुरुस्ती विधेयकाला मंजुरी दिली आहे. त्यामुळे देशात जीएसटी, अर्थातच ‘एक देश, एक कर’ व्यवस्थेचा मार्ग मोकळा झाला. मात्र, अंमलबजावणी होण्याला एप्रिल २0१७ उजाडेल, असा अंदाज आहे.

१५ राज्यांनी जीएसटी विधेयकास मंजुरी दिल्यानंतर हे घटनादुरुस्ती विधेयक मंजुरीसाठी राष्ट्रपतींकडे पाठविण्यात आले होते. घटनादुरुस्ती विधेयकास देशातील एकूण राज्यांपैकी निम्म्यांहून अधिक राज्यांच्या विधानसभांनी मंजुरी देणे बंधनकारक आहे. गेल्या २0 वर्षांच्या काळातील सर्वांत मोठ्या कर सुधारणा म्हणून या विधेयकाकडे पाहिले जात आहे. गुरुवारी आंध्र प्रदेश आणि अरुणाचल प्रदेशच्या विधानसभांनी या विधेयकास मंजुरी दिली. त्यामुळे घटनादुरुस्तीला संमती देणाऱ्या राज्यांची संख्या १७ झाली. यानंतर सरकार जीएसटी परिषद स्थापन करण्याकडे लक्ष घालेल. ही परिषद जीएसटी दर आणि अन्य प्रलंबित मुद्द्यांचा विचार करेल. परिषदेत सर्व राज्यांचे प्रतिनिधी असतील.

जीएसटी दरावर सहमती झाल्यानंतर सेंट्रल जीएसटी (सी-जीएसटी) विधेयक संसदेत मांडले जाईल. त्यानंतर, राज्य सरकारे आपला जीएसटी दर ठरवतील. प्रत्येक राज्य आपले जीएसटी विधेयक विधानसभेत मंजूर करून घेईल. राज्यांना नुकसान झाल्यास केंद्र सरकार पुढील पाच वर्षे त्याची भरपाई देण्याचे आश्वासन सरकारने दिले आहे.

या घटनादुरुस्तीला निम्म्यांहून अधिक राज्यांची मंजुरी मिळायला ३0 दिवस लागतील, अशी केंद्राची अपेक्षा होती. मात्र २३ दिवसांतच १७ राज्यांनी संमती दिली.
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जीएसटी चे प्रशिक्षण घेण्या करीता संपर्क : AIAT Institute, 15-Bhande Plot Umred Road, Nr Shitlamata Mandir Nagpur Mob. 9373104022   http://goo.gl/QD3M5j

CAREER IN ACCOUNTING

Irrespective of the nature & size of organisation, accountants are pivotal components

of any business. Even in the recession period, accountants are crucial part of any

organization, for doing bookkeeping, auditing and financial management. Due to the fact that every company needs an accountant, whether public, private or non-profit,  individuals pursuing the finance course have the choice of finding accountant jobs in a diversified industry and companies.

In fact, accountant job is quite extensive and an accountant is involved in diversified range of activities like quality management, cost computation, using information for tracking financial performance, tax strategies, mergers & acquisitions and so on.

How to build a career in accounting?

For undergraduate students-To get into three-year bachelor degree course in accounts, the candidate should complete the higher senior secondary examination with commerce subjects like economics, maths and accounts. 

Have a look on some of the accountancy courses-

1= Certificate Courses in Accounting

2= Diploma Courses in Accounting

3= Bachelor of Commerce in Accounting and Finance

4= Bachelor of Commerce in Accountancy

5= Bachelor of Commerce in Financial Accounting

6= Master of Commerce in Accounting and Auditing

7= Master of Commerce in Finance and Taxation

8= Post graduate diploma in auditing and computer accounting

Also, there are various professional courses like Chartered Accountant, ICWA, etc., which can be pursued either along with the graduation degree or after completing the college. Moreover, there are various online accounting courses available in the market like Tally, which you can do along with your education. After completing the basic course, you can find junior accountant jobs. 

Some of the specialized accountant fields are-

1= Public Accounting

2= Audit

3= Tax

4= Budget Analysis

5= Financial

6= Real estate finance

7= Management accounting

Scope of accountancy 

There is no dearth of good accountant job opportunities. It is considered as one of  the top career choices made by students. After finishing graduation, a student can  initially join a company as a junior accountant or a trainee. Also, accountants can  find employment in diversified sectors like market research, budget planning,  corporations and consultancies. There is a good scope in teaching field also, where  a post-graduate student can opt for teaching jobs in colleges and universities. This 

sector offers tremendous freelancer accountant job opportunities, which can be  explored at your own convenience.

The accountant salary depends on different factors like experience, company, location, work profile, etc. For those who want to start their career in accounting, the initial salary starts from 8000-15,000/ month. After gaining years of experience and knowledge, one can fetch an amount around Rs 30,000/month.

Besides, there are plenty opportunities available for fresh graduates and experienced professionals in traditional accounting fields-audit & taxation, finance departments, banks and public service.

Requisite skills to get success- 

1= Able to work for longer duration in analyzing financial and environment computing

area

2= strictly adhere to different accounting procedures and regulations

3= Knack of understanding of accounting procedures

4= Advance knowledge of accountancy software

5= Highly analytical skills

6= Strong communication skills

7= Impeccable mathematical abilities

As soon as you’ve refined your accounting abilities for a couple of years, you may commence supplying your consultation services to entrepreneurs or those aiming to start their own company. In many cases, you’ll aid them in developing a viable business strategy to help the company owner obtain financing and assist in the decision-making procedure. 

So, if you think you have the right stuff to be an accountant, get yourself ready and

joint the league of accountants without hesitation.

C. A. Abhijit Kelkar

Important Due Dates For Taxation

Important due dates – Tds return, Tcs, Vat / Cst, Professional Tax, Service tax, various returns, PF, ESIC..

ITR Form Name	ITR Form Description
ITR 1	For Individuals having Income from Salary & Interest.
ITR 2	For Individuals & HUFs not having Income from Business or Profession
ITR 3	For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship
ITR 4	For Individuals & HUFs having income from a proprietory business or profession
ITR 4S (SUGAM)	For Individuals/HUF having income from presumptive business
ITR 5	For firms, AOPs, BOIs and LLP
ITR 6	For Companies other than companies claiming exemption under section

Applicable Challan	NATURE OF TAX PAYMENT
CHALLAN NO./ITNS 281	(Tax Deducted at Source / Tax Collected at Source (TDS/TCS) from corporates or non-corporates)
CHALLAN NO./ITNS 280	ADVANCE TAX, SELF ASSESSMENT TAX, TAX ON DISTRIBUTED PROFITS, TAX ON REGULAR ASSESSMENT, SURTAX, TAX ON DISTRIBUTED INCOME
CHALLAN NO./ITNS 282
(payment of Security Transaction Tax, Hotel Receipts Tax, Estate Duty, Interest Tax, Wealth Tax, Expenditure Tax /Other direct taxes & Gift tax)
CHALLAN NO./ITNS 283	(payment of Banking Cash Transaction Tax and Fringe Benefits Tax)

DUE DATES INCOME TAX RETURN & Audit

ASSESSE	DUE DATE
Audited	30th Sept
Non Audited	31th July
Revised	Within 1 year from the end A.Y. or Completion of Assessment which ever is earlier (if return is filed on or before due date

INTEREST PENALTY U/S 234A,B,C

SECTIONS	Applicable	Period	Rate
201(1A)	Failure to deduct TDS	From Date of payment to date of deduct	1% pm
201(1A)	Failure to deposit tax in time	Date of deduction to Date of deposit	1.5% pm
234A	For Late Filling of IT return	From due date to furnish IT return	1%pm. & part thereof on Net tax liability
234B	Non/Less payment of Advance tax	From 1st April of AY to Date of payment	1%pm. & part thereof on Net tax liability
234C	Deferment of Advance tax	From due date to due date of next installment (in last inst. Up to end of P.Y.)
	1%pm. On installment payable
Installment Due dates of Advance tax
For Non Corporate	For Corporate
DUE DATE	SLAB	DUE DATE	SLAB
–	–	15th June	15%
15th Sept.	30%	15th Sept.	45%
15th Dec.	60%	15th Dec.	75%
15th March	100%	15th March	100%

LIMIT FOR SECTION 44AB TAX AUDIT

S.No.	Financial year	Limit(Business)in lakhas	Professional (in lakhas)
1	2009-10	40	10
2	2010-11, 2011-12	60	15
3	2012-13	100	25

TDS PAYMENT DUE DATE

GOVT.	Within 7 days from the end of month
NON GOVT.	Within 7 days from the end of month
In case of March month upto 30th April

TDS RETURN DUE DATES

Salary payment	With in 15 days from the end of quarter
Payment to Residence(Other than salary)	Within 15 days from the end of each quarter
15th may in case of last quarter
Penalty for delay furnish TDS Return
Section 234E
from 1st July 2012	Fees of Rs. 200 per day will be levied on the Deductor(not supposed to exceed the TDS deductibles)
1. Failure to submit e-TDS Statement on time
2. If you delay or forget to file your e-TDS Statement
Section 271H	Deductor has to pay a penalty ranging from minimum of Rs. 10,000/- to One Lac rupees
1. If Deductor exceeds one year time limit to File TDS Statement.
2. If Deductor furnishes incorrect details like PAN, TDS Amount, Payment of Challan etc.

FORM FOR TDS/TCS RETURN FILING

FORM	FOR WHICH ISSUED
Form 24Q	Quarterly statement of deduction of tax in respect of Salary
Form 26Q	Quarterly statement of deduction of tax in respect of payments other than Salary
Form 27Q	Quarterly statement of deduction of tax in respect of payments other than Salary made to non-residents
Form 27EQ	Quarterly statement of Tax Collection at Source (TCS)
Form 27A	Form for furnishing information with the statement of deduction / collection of tax at source filed on computer media for a given period
Form 27C	Issued as per Rule 37C, this form is the declaration to be made by a buyer for obtaining goods without collection of tax

FORM FOR TDS CERTIFICATE

SECTION	FORM	FOR WHICH ISSUED
203	Form-16	Certificate for tax deducted at source from income chargeable under the head “Salaries”.
203	Form-16A	Certificate for tax deducted at source in respect of income other than Salary.

VAT/CST RETURNS & VAT AUDIT

Particulars	Time For file
Quarterly & Monthly Return	21th of the next month
Six Monthly Return	30th of the next month
Revised Return	Within 8 month of the following financial year
Vat Audit Report U/s 61	30th November
Revised Return after Vat Audit u/s 61	Within 30 days
concession of additional 10 days are given for uploading e-return.However, this concession is available subject to the payment of the tax as per return is made on or before prescribed due date
Interest u/s 30(2)		1.25%pm form the due date of payment to date of payment (calculation day wise)

PROFESSIONAL TAX PAYMENT & RETURNS DUE DATE

Tax Liability	Periodicity	Months of salary to be covered	Due Date
<50 data-blogger-escaped-in=”” data-blogger-escaped-p.y.=”” data-blogger-escaped-td=””>	Annual	March of the P.Y. and April to February of the current year	31st March
≥ 50,000/- in P.Y.	Monthly	Salary of previous month	End of the month for which return is filed
In case of first year of registration	Monthly	Salary of previous month	End of the month for which return is filed
NOTE: PT return required in case of PTRC registration
Profession Tax Penalties	– Delays in obtaining Enrollment , a penalty of Rs. 2/per day and for Registration, a penalty of Rs. 5/- per day.
– Providing false information regarding enrollment – Penalty of 3 times of tax amount.
– Non-payment or late payment of profession tax – Penalty is equal to 10% of the amount of tax to be imposed.
– Late filing of Returns – Penalty of Rs. 300 per return.
Payment due date Up to 30th june with in financial year

SERVICE TAX PAYMENT DUE DATE

Particulars	Frequency	Due Date
		Paid physically	Online
Individual/Partnership & Proprietary firm	Quarterly	5th of the following quarter	6th of the following quarter
Others	Monthly	5th of the following Month	6th of the following quarter
However, in case of end quarter/March, the payment should be made by 31st March
Interest on late payment of ST is 18%pa from the due date to date of payment. benefit of 3% is provided where turnover of any Assessee is upto Rs.60 Lakhs, i.e. 15% pa

SERVICE TAX RETURN DUE DATE

For the Half Year	To be Filed by
1st April to 30th September	25th October
1st October to March	25th April
Due Date for Return filing for Input Service Distributor (ISD)
1st April to 30th September	30th October
1st October to March	30th April
Penalty for delay file ST return: Upto 15 days from Due Date – 500
Upto 30 days from Due Date – 1000
After 30 days (1000+100 per day) – Maximum penalty Rs. 20000/-
We can revise ST return with in 90 days from date of filling the return

FORMS UNDER SERVICE TAX

FORM	LIABILITY	TIME PERIOD	WHEN & BY WHOM
ST-1	Service tax Registration	Within 30 days from the date of
starting of business or reaching Rs.9 Lacs taxable T/O or commandments of new levy
	At the time of starting business
ST-2	ST Registration certificate	With in 7 days from the date of application	To be given by Service tax dept.
ST-3	ST Return	With in 25 days after complete half year	Half yearly
ST-4	Appeal to commissioner of central Excise (Appleals)	With in 3 from the date of receipt order	Assessee
ST-5	Appleals to CESTAT	With in 3 from the date of receipt order	Assessee
ST-6	Cross Objections	With in 45days from the date of order	Assessee/Department
ST-7	Appleals to CESTAT	With in 3 fro the date of receipt order	Board
GAR-7 CHALLAN	Payment service Tax	With in 5/6 days from the end of month & quarter	Assessee

Payment Due Date for PT, ESIC, PFProfessional Tax 15 of succeeding month + 5 days grace ESIC 16 of succeeding month + 5 days grace Provident Fund 15 of succeeding month + 5 days grace Service tax payable on the basis of Point of taxationRule Of Point of taxation: Which ever is earlier i) Date of invoice if invoice issue within 14 days from the completion of service OR Otherwise Date of completion of service ii) Date of payment receipt Point of Taxation Rules, shall not apply to

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Industrial Accounting & Taxation Training 

AIAT Institute 
15, Bhande Plot, Umred Road, Nagpur
Call- 9373104022      www.aiatindia.com

EXPORT BENEFITS -

1. EXPORT PROMOTION SCHEMES - 

Foreign Trade Policy 2015-20 and other schemes provide promotional measures to boost India’s exports with the objective to offset infrastructural inefficiencies and associated costs involved to provide exporters a level playing field. Brief of these measures are as under:

1.1Exports from India Scheme

i.Merchandise Exports from India Scheme (MEIS)

Under this scheme, exports of notified goods/ products to notified markets as listed in Appendix 3B of Handbook of Procedures, are granted freely transferable duty credit scrips on realized FOB value of exports in free foreign exchange at specified rate (2-5%). Such duty credit scrips can be used for payment of custom duties for import of inputs or goods, payment of excise duty on domestic procurement, payment of service tax and payment of custom duties in case of EO default.

Exports of notified goods of FOB value uptoRs 25, 000 per consignment, through courier or foreign post office using e-commerce shall be entitled for MEIS benefit.

ii.Service Exports from India Scheme (SEIS)

Service providers of notified services as per Appendix 3E are eligible for freely transferable duty credit scrip @ 5% of net foreign exchange earned.

2. DUTY EXEMPTION & REMISSION SCHEMES

These schemes enable duty free import of inputs for export production with export obligation. These scheme consists of:-

2.1 Advance Authorization Scheme:

Under this scheme, duty free import of inputs are allowed, that are physically incorporated in the export product (after making normal allowance for wastage) with minimum 15% value addition. Advance Authorization (AA) is issued for inputs in relation to resultant products as per SION or on the basis of self declaration, as per procedures of FTP. AA normally have a validity period of 12 months for the purpose of making imports  and a period of 18 months for fulfillment of Export Obligation (EO) from the date of issue.  AA is issued either to a manufacturer exporter or merchant exporter tied to a supporting manufacturer(s).

2.2 Advance Authorization for annual requirement

Exporters having past export performance (in at least preceding two financial years) shall be entitled for Advance Authorization for Annual requirement. This shall only be issued for items having SION.

2.3 Duty Free Import Authorization (DFIA) Scheme:

DFIA is issued to allow duty free import of inputs, with a minimum value addition requirement of 20%. DFIA shall be exempted only from the payment of basic customs duty. DFIA shall be issued on post export basis for products for which SION has been notified. Separate schemes exist for gems and jewellery sector for which FTP may be referred.

2.4 Duty Drawback of Customs/Central Excise Duties/Service Tax:

The scheme is administered by Department of Revenue. Under this scheme products made out of duty paid inputs are first exported and thereafter refund of duty is claimed in two ways:

i) All Industry Rates :    As per Schedule

ii) Brand Rate          :    As per application on the basis of data/documents

2.5 Rebate of Service tax through all industry rates

Refund of service tax paid on specified output services used for export of goods is available at specified all industry rates.

3. EPCG SCHEME

3.1 Zero duty EPCG scheme

Under this scheme import of capital goods at zero custom duty is allowed for producing quality goods and services to enhance India’s export competitiveness. Import under EPCG shall be subject to export obligation equivalent to six times of duty saved in six years. Scheme also allows indigenous sourcing of capital goods with 25% less export obligation.

3.2 Post Export EPCG Duty Credit Scrip Scheme

A Post Export EPCG Duty Credit Scrip Scheme shall be available for exporters who intend to import capital goods on full payment of applicable duty in cash.

4. EOU/EHTP/STP & BTP SCHEMES

Units undertaking to export their entire production of goods and services may be set up under this scheme for import/ procurement domestically without payment of duties. For details of the scheme and benefits available therein FTP may be required.

5. OTHER SCHEMES

5.1 Towns of Export Excellence (TEE)

Selected towns producing goods of Rs. 750 crores or more are notified as TEE on potential for growth in exports and provide financial assistance under MAI Scheme to recognized Associations.

5.2 Rebate of duty on “export goods” and “material” used in manufacture of such goods: 

Rebate of duty paid on excisable goods exported or duty paid on the material used in manufacture of such export goods may be claimed under Rule of 18 of Central Excise Rules, 2002.

5.3 Export of goods under Bond i.e. without payment of excise duty: 

Rule 19 of Central Excise Rules 2002 provides clearance of excisable goods for exports without payment of central excise duty from the approved factory, warehouse and other premises.

5.4 Market Access Initiative (MAI) Scheme

Under the Scheme, financial assistance is provided for export promotion activities on focus country, focus product basis to EPCs, Industry & Trade Associations, etc.  The activities are like market studies/surveys, setting up showroom/warehouse, participation in international trade fairs, publicity campaigns, brand promotion, reimbursement of registration charges for pharmaceuticals, testing charges for engineering products abroad, etc.  Details of the Scheme is available at www.commerce.nic.in

5.5 Marketing Development Assistance (MDA) Scheme

Financial assistance is available for exporters having an annual export turnover uptoRs. 30 crores for trade fairs, buyer seller meets organized by EPC’s/ Trade promotion organizations. MDA guidelines available at www.commerce.nic.in

5.6 Status Holder Scheme

Upon achieving prescribed export performance, status recognition as one star Export House, two Star Export House, three star export house, four star export house and five star export house is accorded to the eligible applicants as per their export performance.  Such Status Holders are eligible for various non-fiscal privileges as prescribed in the Foreign Trade Policy.

 In addition to the above schemes, facilities like 24X7 customs clearance, single window in customs, self assessment of customs duty, prior filing facility of shipping bills etc are available to facilitate exports.

Join : AIAT Institute, 15, Bhande plot, Umred Road Nagpur 

 Call - 9373104022

What Is a Letter of Credit ?

What Is a Letter of Credit?

When you hear the phrase 'letter of credit,' it might be natural to think it refers to a document verifying that you are creditworthy, but that isn't the case. A letter of credit is a document issued by a third party that guarantees payment for goods or services when the seller provides acceptable documentation. Letters of credit are usually issued by banks or other financial institutions, but some creditworthy financial services companies, like insurance companies or mutual funds, might issue letters of credit under certain circumstances.

A letter of credit generally has three participants. First, there is the beneficiary, the person or company who will be paid. Next, there is the buyer or applicant of the goods or services. This is the one who needs the letter of credit. Finally, there is the issuing bank, the institution issuing the letter of credit. In addition, the beneficiary may request payment to an advising bank, which is a bank where the beneficiary is a client, rather than directly to the beneficiary. This might be done, for example, if the advising bank financed the transaction for the beneficiary until payment was received.
Letters of credit are most often used in international trade, where they are governed by the Uniform Customs and Practice for Documentary Credits (or UCP), the rules of the International Chamber of Commerce. However, they can be used in other situations, as we shall see.

Types and Features of Letters of Credit
Most letters of credit are import/export letters of credit, which, as the name implies, are letters of credit that are used in international trade. The same letter of credit would be termed an import letter of credit by the importer and an export letter of credit by the exporter. In most cases, the importer is the buyer and the exporter is the beneficiary.
There are also other types of letters of credit. The revocable letter of credit can be changed at any time by either the buyer or the issuing bank with no notification to the beneficiary. The most recent version of the UCP, UCP 600, did away with this form of letter of credit for any transaction under their jurisdiction. Conversely, the irrevocable letter of credit only allows change or cancellation of the letter of credit by the issuing bank after application by the buyer and approval by the beneficiary. All letters of credit governed by the current UCP are irrevocable letters of credit.
A confirmed letter of credit is one where a second bank agrees to pay the letter of credit at the request of the issuing bank. While not usually required by law, an issuing bank might be required by court order to only issue confirmed letters of credit if they are in receivership. As you might guess, an unconfirmed letter of credit is guaranteed only by the issuing bank. This is the most common form with regard to confirmation.
A letter of credit may also be a transferrable letter of credit. These are commonly used when the beneficiary is simply an intermediary for the real supplier of the goods and services or is one of a group of suppliers. It allows the named beneficiary to present its own documentation but transfer all or part of the payment to the actual suppliers. As you might guess, an un-transferrable letter of credit does not allow transfer of payments to third parties.
A letter of credit may also be at sight, which is payable as soon as the documentation has been presented and verified, or payment may be deferred. Deferred letters of credit are also called a usance letter of credit and may be put off until a certain time period has passed or the buyer has had the opportunity to inspect or even sell the related goods.
A red clause letter of credit allows the beneficiary to receive partial payment before shipping the products or performing the services. Originally, these terms were written in red ink, hence the name. In practical use, issuing banks will rarely offer these terms unless the beneficiary is very creditworthy or an advising bank agrees to refund the money if the shipment is not made.
Finally, a back-to-back letter of credit is used in a trade involving an intermediary, such as a trading house. It is actually made up of two letters of credit, one issued by the buyer's bank to the intermediary and the other issued by the intermediary's bank to the seller.

Documentation Requirements
In order to receive payment, the beneficiary must present documentation of completion of their part in the transaction to the issuing bank. The documents that the issuing bank will accept are specified in the letter of credit, but may often include:

• Bills of exchange
• Invoices
• Government documents such as licenses, certificates of origin, inspection certificates, embassy legalizations, and phytosanitary certificates
• Shipping and transport documents such as bills of lading and airway bills
• Insurance policies or certificates, except cover notes

Risks in Letter of Credit Transactions

Letter of credit transactions are not without risks. The risks inherent in these types of transactions include:

Fraud risk, in which the payment is obtained through the use of falsified or forged documents for worthless or nonexistent merchandise
Regulatory risk, in which government action may prevent completion of the transaction
Legal risk, in which legal action prevents completion of the transaction
Force majeure risk, in which completion of the transaction is prevented by an external force, such as war or natural disaster
Failure of the issuing or collecting bank
Or insolvency of the buyer or beneficiary
In addition, the normal risks inherent in transactions, such as non-delivery, shipping less than was ordered, inferior quality merchandise, early or late shipment, or goods being damaged in transit, apply.
A Letter of Credit in Action
Sometimes the best way to understand a concept is to walk through an example, so that's exactly what we'll do.

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 AIAT Institute,

 15, Bhande Plot Umred Road, Nagpur Mob. 9373104022   
www.aiatindia.com

EXPORT DOCUMENTATION AND PROCEDURES

Exporters should seriously consider having the freight forwarder handle the formidable amount of documentation that exporting requires; freight forwarders are specialists in this process. The following documents are commonly used in exporting; which of them are actually used in each case depends on the requirements of both our government and the government of the importing country.

• 1. Commercial invoice
• 2. Bill of lading
• 3. Consular invoice
• 4. Certificate of origin
• 5. Inspection certification
• 6. Dock receipt and warehouse receipt
• 7. Destination control statement
• 8. Insurance certificate
• 9. Export license
• 10. Export packing list

STEP1: Enquiry :
The starting point for any Export Transaction is an enquiry.
An enquiry for product should, inter alia, specify the following details or provide the following data
Size details - Std. or oversize or undersize
Drawing, if available
Sample, if possible
Quantity required
Delivery schedule
Is the price required on FOB or C& F or CIF basis
Mode of Dispatch - Sea, air or Sea/air
Mode of Packing
Terms of Payment that would be acceptable to the Buyer - If the buyer proposes to open any Letter of Credit, any specific requirement to be complied with by the Exporter
Is there any requirement of Pre-shipment inspection and if so, by which agency
Any Certificate of Origin required - If so, from what agency.

STEP 2: - Proforma generation :
After studying the enquiry in detail, the exporter - be it Manufacturer Exporter or Merchant Exporter - will provide a Proforma Invoice to the Buyer.

STEP 3: Order placement :
If the offer is acceptable to the Buyer in terms of price, delivery and payment terms, the Buyer will then place an order on the Exporter, giving as much data as possible in terms of specifications, Part No. Quantity etc. (No standard format is required for such a purchase order)

STEP 4: Order acceptance :
It is advisable that the Exporter immediately acknowledges receipt of the order, giving a schedule for the delivery committed.

STEP 5: Goods readiness & documentation :
Once the goods are ready duly packed in Export worthy cases/cartons (depending upon the mode of despatch), the Invoice is prepared by the Exporter.
If the number of packages is more than one, a packing list is a must.
Even If the goods to be exported are excisable, no excise duty need be charged at the time of Export, as export goods are exempt from Central Excise, but the AR4 procedure is to be followed for claiming such an exemption.
Similarly, no Sales Tax also is payable for export of goods.

STEP 6: Goods removal from works :
There are different procedures for removing Export consignments to the Port, following the AR4 procedure, but it would be advisable to get the consignment sealed by the Central Excise authorities at the factory premises itself, so that open inspection by Customs authorities at the Port can be avoided.
If export consignments are removed from the factory of manufacture, following the AR4 procedure, claiming exemption of excise duty, there is an obligation cast on the exporter to provide proof of export to the Central Excise authorities

STEP 7: Documents for C & F agent :
The Exporter is expected to provide the following documents to the Clearing & Forwarding Agents, who are entrusted with the task of shipping the consignments, either by air or by sea.
Invoice
Packing List
Declaration in Form SDF (to meet the requirements as per FERA) in duplicate.
AR4 - first and the second copy
Any other declarations, as required by Customs
On account of the introduction of Electronic Data Interchange (EDI) system for processing shipping bills electronically at most of the locations - both for air or sea consignments - the C&F Agents are required to file with Customs the shipping documents, through a particular format, which will vary depending on the nature of the shipment. Broad categories of export shipments are:
Under claim of Drawback of duty
Without claim of Drawback
Export by a 100% EOU
Under DEPB Scheme

STEP 8: Customs Clearance :
After assessment of the shipping bill and examination of the cargo by Customs (where required), the export consignments are permitted by Customs for ultimate Export. This is what the concerned Customs officials call the ‘LET EXPORT’ endorsement on the shipping bill.

STEP 9: Document Forwarding :
After completing the shipment formalities, the C & F Agents are expected to forward to the Exporter the following documents:
Customs signed Export Invoice & Packing List
Duplicate of Form SDF
Exchange control copy of the Shipping Bill, processed electronically
AR4 (original duplicate) duly endorsed by Customs for having effected the Export
Bill of Lading or Airway bill, as the case may be.

STEP 10: Bills negotiation :
With these authenticated shipping documents, the Exporter will have to negotiate the relevant export bill through authorized dealers of Reserve Bank, viz., Banks.
Under the Generalized System of Preference, imports from developing countries enjoy certain duty concessions, for which the exporters in the developing countries are expected to furnish the GSP Certificate of Origin to the Bankers, along with other shipping documents.
Broadly, payment terms can be:
DP Terms
DA Terms
Letter of Credit, payable at sight or payable at... days.

Step11: Bank to bank documents forwarding :
The negotiating Bank will scrutinize the shipping documents and forward them to the Banker of the importer, to enable him clear the consignment.
It is expected of such authorized dealers of Reserve Bank to ensure receipt of export proceeds, which factor has to be intimated to the Reserve Bank by means of periodical Returns.

STEP 12: Customs obligation discharge :
As indicated above, Exporters are also expected to provide proof of export to the Central Excise authorities, on the basis of the Customs endorsements made on the reverse of AR4s and get their obligation, on this score, discharged.

STEP 13: Receipt of Bank certificate :
Authorized dealers will issue Bank Certificates to the exporter, once the payment is received and only with the issuance of the Bank Certificate, the export transaction becomes complete.
It is mandatory on the part of the Exporters to negotiate the shipping documents only through authorized dealers of Reserve Bank, as only through such a system Reserve Bank can ensure receipt of export proceeds for goods shipped out of this country.

Why is GST Important For India

GST is expected to be a critical reform in spurring growth in the economy. When introduced, GST will not only make the tax system simpler, but will also help in increased compliance, boost tax revenues, reduce the tax outflow in the hands of the consumers and make exports competitive. It is hoped that the new Government will set forth a roadmap of the GST implementation in the upcoming Budget. The GST or the Goods and Service Tax is a long pending indirect tax reform which India has been waiting for, and which is hoped to iron out the wrinkles in the existing tax system. This comprehensive tax policy is expected to be one of the most important reforms in contributing to the India growth story. To begin with, the GST is a value added tax to be levied on both goods and services (except for a list of exempted goods and services), at both the centre and state level (Central GST and State GST respectively). This is a single tax which will be levied on the product or service which is sold. In other words, multiple taxes like CENVAT, central sales tax, state sales tax, octroi, etc will not exist and will be replaced by GST. This comprehensive tax covers all stages from manufacture to sale. The tax will be levied only on the value added at each stage of the life cycle. The GST, as mentioned above is an indirect tax and will be borne by the customer. There will be a standard rate of GST across various goods and services, which could broadly be in line with international rates. World over, GST has been implemented in over 150 countries. You may wonder why this tax reform is so important for the country and how it will help the common man. Here’s how: 

Simpler tax structure: As multiple taxes on a product or service are eliminated and a single tax comes into place, the tax structure is expected to be much simpler and easier to understand. Paperwork will become simpler and there will be a reduction in accounting complexities for businesses. A simple taxation regime can make the manufacturing sector more competitive and save both money and time. Experts opine that the implementation of GST would push up GDP by 1%-2%.

Increased tax revenues: A simpler tax structure can bring about greater compliance, thus increasing the number of tax payers and in turn tax revenues for the Government. The current state of the Indian economy demands fiscal consolidation and reduction in fiscal deficit. A recent report by CRISIL states that GST is the country’s best bet to achieve fiscal consolidation. As there is not much scope to reduce Government expenditure, increasing tax revenues is the best alternative to improve the fiscal health. 

Competitive pricing: GST will eliminate all other forms of indirect taxing. This will effectively mean that the tax paid by the final consumer will come down in most cases. Lower prices will help in boosting consumption, which is again beneficial to companies. The biggest positive of GST is that goods and services will be taxed on a common basis. 

Boost to exports: When the cost of production falls in the domestic market, Indian goods and services will be more price-competitive in foreign markets. This can bode well for exporters, who compete with manufacturers abroad facing a lower cost structure. The exact rate of tax levied under GST will obviously be clear only when the final announcement will be made. Irrespective of the tax rate, it is logical and apparent from examples of other countries, that GST is a critical reform needed for the country. However, many state Governments are not in favour of this move, as it will result in a fall in their tax revenues. Arriving at a suitable formula to solve this problem, making constitutional changes and considering all the dynamics in the economy has resulted in a considerable delay in GST’s implementation. The CRISIL report states that at best, only a partial rollout of GST will be possible by the Government in the next financial year. The majority win by the ruling party in the recent elections has given a renewed hope that such important structural reforms will be brought into place without much delay. It is hoped fervently by the industry that Budget 2015 will spell out some solid measures and give a roadmap to the implementation of the GST. 

क्या है GST

वस्तु और सेवा कर (जीएसटी) एक अप्रत्यक्ष कर है। जीएसटी के तहत वस्तुओं और सेवाओं पर एक समान कर लगाया जाता है। जहां जीएसटी लागू नहीं है, वहां वस्तुओं और सेवाओं पर अलग-अलग टैक्स लगाए जाते हैं। सरकार अगर इस बिल को 2016 से लागू कर देती तो हर सामान और हर सेवा पर सिर्फ एक टैक्स लगेगा यानी वैट, एक्साइज और सर्विस टैक्स की जगह एक ही टैक्स लगेगा। संक्षिप्त में कहे तो भारत में 20 तरह के टैक्स लगते हैं और अब एक टैक्स इन सबकी जगह ले लेगा, और वो होगा जीएसटी।

इससे पूरे देश में वस्तुओं और सेवाओं की कीमतें लगभग एक हो जाएंगी। उत्पादन लागत घटेगी, जिससे उपभोक्ताओं के लिए सामान सस्ता होगा।

जीएसटी के फायदे

● इससे पूरे देश में किसी भी सामान को खरीदने के लिए एक ही टैक्स चुकाना होगा। यानी पूरे देश में किसी भी सामान की कीमत एक ही रहेगी।

● इससे कर की वसूली करते समय कर विभाग के अधिकारियों द्वारा कर में हेराफेरी की संभावना भी कम हो जाएगी।

● इसके लागू होने के बाद राज्यों को मिलने वाला वैट, मनोरंजन कर, लग्जरी टैक्स, लॉटरी टैक्स, एंट्री टैक्स आदि भी खत्म हो जाएंगे। जिससे अभी जिस सामान के लिए 30-35 प्रतिशत टैक्स के रूप में चुकाना पड़ता है वो भी घटकर 20-25 प्रतिशत पर आ जायेगा।

● भारत की ग्रोथ रेट में भी एक से डेढ़ फीसदी की बढ़ोतरी होगी।

● केंद्रीय बिक्री कर (सीएसटी) खत्म हो जाएगा। प्रवेश शुल्क और चुंगी भी खत्म हो जाएगी। अलग-अलग टैक्स की बजाय एक टैक्स लगने की वजह से चीजों के दाम घटेंगे और आम उपभोक्ताओं को फायदा होगा।

जीएसटी के किसको होगा नुकसान

जीएसटी लागू होने से राज्यों को डर है कि इससे उन्हें नुकसान होगा क्योंकि इसके बाद वे कई तरह के टैक्स नहीं वसूले पाएंगे जिससे उनका राजस्व कम हो जाएगा। इसे ध्यान में रखते हुए केंद्र ने राज्यों को राहत देते हुए मंजूरी दे दी है कि वे इन वस्तुओं पर शुरुआती सालों में टैक्स लेते रहें। साथ ही, राज्यों का जो भी नुकसान होगा, केंद्र उसकी भरपाई पांच साल तक करेगा।

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