Finance Ministry pegs dollar value at Rs 79.90 for computing import duty

Jul 09, 2022

The Finance Ministry Thursday pegged the exchange rate for dollar at Rs 79.90 for calculation of import duty with effect from July 8, as against Rs 78.95 a fortnight ago. The sharp revision is due to depreciation of rupee against dollar following outflow of capital caused by various external factors, including the hardening of interest rate globally.

Similarly, in case of pound sterling, the value has been fixed at Rs 96.10 as compared to Rs 96.70 earlier, according to a finance ministry statement.

As regards euro, the conversion rate for calculating taxes on imported goods has been fixed at Rs 82.15 as compared to Rs 83.10 on June 16, it said.

The sharp revision in exchange rates comes in the backdrop of the rupee depreciating by 4.1 per cent against the US dollar during the current financial year so far (up to July 5). However, it is modest relative to other EMEs and even major advanced economies.

GST

Explained: Import duty changes in Budget 2022, and its significance

 Feb 03, 2022

Signalling a move to protect domestic industries which are not necessarily capital, technology or labour intensive, Finance Minister Nirmala Sitharaman on Tuesday introduced a slew of higher custom duties on items of daily use such as umbrellas, headphones, earphones, loudspeakers, smart meters, and imitation jewelry.

Who do the duty changes help and what do they signify?
Most of these products are imported from China, either as complete units or as knocked down units which are then assembled in factories in India. For example, the customs duty on umbrellas was doubled to 20 per cent, while exemptions provided on import of parts of umbrellas were withdrawn. Similarly, the customs duty on single or multiple loudspeakers, whether or not mounted in their enclosures was hiked to 20 per cent from 15 per cent.

GST

Customs duty exemptions on 350 items withdrawn to push 'Make in India'

Feb 03, 2022 

As many as 350 customs duty exemptions have been withdrawn in the Budget 2022-23 to boost domestic manufacturing. A comprehensive review of customs duty exemption on capital goods and project imports undertaken and more than 40 customs exemptions to be gradually phased out, the Central Board of Indirect Taxes and Customs (CBIC) tweeted.

In total, 350 customs exemptions are being withdrawn, the CBIC said.

The Budget tabled in Parliament on February 1 had rationalised customs duty rate on a host of goods.

Duty on capital goods and project imports was rationalised by phasing out concessional rates and applying a moderate tariff of 7.5 per cent.

However, exemptions for advanced machineries that are not manufactured within the country will continue.

GST

Importers of denatured ethyl alcohol drag government to court over GST classification issue

Jan 20, 2022 

Importers of denatured ethyl alcohol, a raw material used in hand sanitisers and disinfectants, and a constituent used in Remdesivir, have approached the Bombay High Court after the customs department initiated investigations into the classification of imported products.

Hearing the writ petition filed by one of the companies, Satyam Petrochemicals, the court asked the customs department to give at least a week’s notice before taking any "coercive steps".
The importers had claimed that the customs department had conducted seizures that could have impacted their supply and created a shortage of the raw material.

GST

India imposes antidumping duty on 5 Chinese goods for 5 years

Dec 27, 2021 

India has imposed antidumping duties on five Chinese products, including certain aluminium goods and some chemicals, for five years to guard local manufacturers from cheap imports from the neighbouring country. According to separate notifications of the Central Board of Indirect Taxes and Customs (CBIC), the duties have been imposed on certain flat rolled products of aluminium; sodium hydrosulphite (used on dye industry); silicone sealant (used in manufacturing of solar photovoltaic modules, and thermal power applications); hydrofluorocarbon (HFC) component R-32; and hydrofluorocarbon blends (both have uses in refrigeration industry).

These duties were imposed following recommendations of the commerce ministry's investigation arm Directorate General of Trade Remedies (DGTR).

GST

Feb 21, 2022 

The government is looking to ban statutory auditors from taking up non-audit work on “public interest” companies — which means those that are listed or are above a certain threshold — and their subsidiaries.

Besides, it is exploring the possibility of joint audit for certain companies as part of the amendments to the Companies Act, for which a Bill is planned to be introduced during the Budget session of Parliament that reconvenes next month, sources told TOI. The ministry of corporate affairs (MCA), which will pilot the Bill, is currently engaged in consultations and is yet to decide the final details of the legislation, which will also need inter-ministerial discussion and a go-ahead from the Union Cabinet.

While both the issues — joint audit and ban on non-audit work by audit firms — have been discussed in the past, the government has been reluctant to legislate on the issue principally due to opposition from chartered accountants, a powerful interest group.

Audits

Statutory auditors get a breather on NFRA-2 form

Mar 11, 2020 

Statutory auditors have been given more time to file their form NFRA-2 — which specifies the format of annual return — for financial year 2018-19 with the National Financial Reporting Authority (NFRA), the independent audit regulator.

They can now file this form within 150 days from the date of its publication on NFRA’s website i.e., 150 days from December 9, when it was published on website.

It may be recalled that the corporate affairs ministry (MCA) had, in December last year, given a breather for statutory auditors who were earlier required to file the NFRA-2 form with NFRA by November 30.

It had then said that the form NFRA-2 could be filed with NFRA within 90 days from the day on which it was published on the website of the authority.


This meant that auditors had time till March 9 to file the comprehensive annual return for 2018-19. Now, this time limit has been extended by two more months — by May 9, this form has to be filed.

One of the reasons for extending the timeline in November 2019 was that the NFRA came up with the format very late and closer to the November 30 deadline. As the information sought was quite extensive, more time was required and representations were made to the MCA to extend the last date of filing, sources said. Even with the revised deadline of March 9, auditors are not able to provide comprehensive information that is sought to be obtained by the regulator.

Audits

Govt to review regulations of audit services, floats paper

·         Feb 10, 2020 

The ministry of corporate affairs (MCA) has floated a consultation paper seeking to review regulations of audit services and business with a view to enhance independence and accountability of audit firms. It will explore ways to check concentration of audit services with a few firms and to analyse its impact on economy.

Audits