EXPORT INVOICES
RBI proposes rationalising regulations on export, import transactions
As per the draft, every exporter should furnish to the specified authority a declaration specifying the amount representing the full export value of the goods or services. "The amount representing the full export value of goods and services shall be realised and repatriated to India within nine months from the date of shipment for goods and date of invoice for services," it said.
Avalara's strategy to expand in India aligns well with the country's export ambitions: Anil Paranjape
By leveraging technology, Avalara says businesses can focus on their core operations without being bogged down by the complexities of cross-border tax compliance.
CBIC orders release of imports without delay
Industry was facing delays in release of consignments and denial of free trade agreement benefits with authorities questioning value addition in third-party invoicing, ET reported on June 8.
White goods, FMCG imports failing to get custom-fit tag
White goods, chemicals, pharmaceuticals, and FMCG companies face import delays or higher duties as customs authorities scrutinize third-party invoicing at various ports. This practice, used for tax optimization, allows invoicing through a country different from the goods' origin and is permitted under FTAs. However, customs officials suspect abuse of FTA provisions, withholding consignments and denying lower duty benefits at ports like Nhava Sheva. Authorities demand differential duty payments and invoke rules addressing potential duty evasion through third-party invoicing, leading to potential supply disruptions.
Compliance plays a big part in helping Indian MSMEs grow exports
While challenges persist, the compliance levels of Indian MSMEs in terms of export have been gradually improving, say experts.
Rise and shine, how to gain currency
There is an emerging need for energy-importing economies like India and China to try to delink international trade from the dollar. But it is not an easy job. The dollar is at one end of nearly 90% of all foreign exchange trades. The greenback constitutes around 60% of forex reserves held by central banks globally. Foreign governments and private investors hold over 30% of US treasuries.
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NITI Aayog lays out roadmap for boosting exports from MSMEs
In its report, done in collaboration with the Foundation for Economic Development, the Aayog has proposed a series of measures including boosting e-commerce exports, creating a comprehensive trade portal, promoting ease of merchandise exports, improving access to export finance and creation of one stop information channel for exporters.
Peeling off layer by layer: Regulating onion prices & its crash
Onion prices in the retail trade have fluctuated from ?90 per kg to ?20/kg during the last six months, while the wholesale prices have seen a high of Rs 55/kg and lows of Rs 5/kg during the same period. Shortage in India's last year's rabi crop, followed by erratic monsoon affecting the kharif crop and a robust export demand have been among the top causes for India's onion ongoing problem. During the last few days, the country saw onion prices increase by Rs 5/kg on reports that the central government had decided to lift the export ban, but have again fallen after consumer affairs secretary Rohit Kumar Singh issued a statement that the export ban would continue.
India allows export of onions to select nations
India, the world's second largest onion exporter, had banned shipments of the kitchen staple in December 2023 till March 2024 due to rising domestic prices and potential shortages. This led to a surge in onion prices in neighbouring countries.
EU moving towards paperless customs system from June; Indian exporters must prepare to comply
The European Union (EU) is transitioning to a paperless customs process, implementing the second phase of its Import Control System (ICS) from June 3, 2024. This move is significant for Indian exporting firms, as the EU constitutes about 17% of India's total merchandise exports.
Mandatory linking of e-invoice with e-way bill may cause operational disruption: Experts
Rajarshi Dasgupta, Head Tax at Aquilaw told PTI that the advisory on linking e-invoice with e-way bill will cause "technical difficulty in the hands of exporters having a turnover over Rs 5 crore as there is no time limit relaxation for the generation of e-invoice".
No e-way bill sans e-invoice details from March 1
According to NIC, the move was initiated after many cases surfaced where the invoice details entered separately under e-way bill and e-invoice were not matching with respect to certain parameters.
Why have onion prices crashed in the past three weeks?
The Indian government's decision to ban onion exports until March 2024 resulted in a drastic 60% price decline in less than three weeks. The ban aimed to address issues like under-invoicing and wrong export policies, including the absence of a fixed floor price with the initial export duty and the subsequent removal of duty without a minimum export price.
No takers for rupee payment for oil imports
"During FY 2022-23, no crude oil imports by oil PSUs was settled in Indian rupee. Crude oil suppliers (including UAE's ADNOC) continue to express their concern on the repatriation of funds in the preferred currency and also highlighted high transactional costs associated with conversion of funds along with exchange fluctuation risks," the oil ministry told the parliamentary department related standing committee.
India extends curbs on onion exports till March 31, 2024 amid price spike
India has extended restrictions on onion exports until March 31, 2024, aiming to maintain ample supply and curb escalating prices of this politically significant vegetable. With a minimum export price set at $800 per tonne until December 31, 2023, the government seeks to stabilize domestic onion availability amidst nearly doubled prices within a year.
Why are onion prices on the rise again?
Onion prices started to climb in Maharashtra’s Pimpalgaon and Lasalgaon wholesale markets, Asia’s largest, in the second week of August. However, they shot through the roof in October, just after the end of Navratri, crossing Rs 85 per kg in some markets.
RBI permits banks to open current account for export proceeds in addition to special rupee vostro accounts
In July 2022, the RBI had asked banks to put in place additional arrangements for export and import transactions in Indian rupees in view of increasing interest of the global trading community in the domestic currency.
Pilot launch of upgraded electronic bank realisation certificate system for exporters from Nov 15
The commerce ministry plans to soft-launch the revamped electronic Bank Realisation Certificate (eBRC) on November 15. The eBRC is an essential document for exporters, confirming that they have received payment from a foreign buyer. The upgraded system will rely on electronic inward remittance messages transmitted directly by banks to the Directorate General of Foreign Trade (DGFT).
Why are onion exports continuing in substantial volumes despite an export duty of 40%? An explainer
Veteran trade insiders say the reason why exports are still continuing in high volumes is under invoicing of onion prices by exporters, as that allows them to pay lower duty.
Rice traders demand flat export duty on parboiled rice
Rice exporters in Kolkata have requested the Indian government to impose a flat export duty of USD 80 per tonne for parboiled rice, instead of the current 20% duty. The Indian Rice Exporters Federation (IREF) has also asked the government to reconsider the ban on white rice exports and reduce the minimum export price for basmati rice to USD 850 per tonne.
RXIL Global to help MSMEs get early payment on export invoices through ITFS
MSMEs don’t have deep pockets and so often find themselves in trouble when it comes to realising payments for exports. But a trade platform offers them a way to discount their invoices and get cash in hand almost immediately.
Centre and traders divided over deciding the market price of onions and rice
Exporters and government officials in India are divided on the correct market price of food grains and onions, on which customs duty is calculated. The lack of a proper system to calculate the tax has led to under-invoicing by some traders to avoid customs duty and the illegal shipment of banned commodities. In response, the government has announced that only export contracts with a minimum price of $1,200 per tonne will be cleared for shipments under the basmati rice category. Both onion and rice exporters are now calling for customs duty to be fixed per kilogram of the commodity exported.
Govt can support exporters by addressing existing gaps, ambiguity in GST regulations
Experts suggested that it is important the government bring some clarity whether exporters will have to pay GST on reverse charge mechanism with respect to bank charges which have been deducted by overseas bank, when importer remits the sales proceeds.
How new TReDS proposals by RBI will incentivise MSMEs, strengthen bill discounting
To boost the MSME sector, it was crucial to offer them timely finance irrespective of the loan ticket size, keeping in mind their ability to provide collateral and their credit score.
How trade receivable is different from trade factoring
Trade finance assists both importers and exporters in developing trust in their dealings with one another, thereby facilitating trade.
What if everything goes wrong at the same time? For the global economy, 2023 can be tumultuous
A deeper energy crunch in Europe, an earlier and more painful recession in the US, or more pandemic restrictions and an uncontrolled slide in real estate in China could conspire to make even that uninspiring number unattainable.
Under-invoicing of Chinese imports under taxman's lens
Customs authorities have issued notices to 32 importers from the last week of September for suspected tax evasion of about Rs 16,000 crore through under-invoicing from April 2019 to December 2020.
How uniformity in tax law made a common national market
The GST law is driven by the recommendations of the GST Council, which is a body having representation from both Central and State Governments, thus promoting uniformity in law, practice, tax processes and standardisation of reports or filings.
The need to make GST reporting standardised, less cumbersome for taxpayers and administrators
There is no doubt that the Government has put in its best efforts to clarify the issues to avoid confusion prevailing among taxpayers, however, there are many disputes that need prompt addressing so that litigation/disputes can be avoided.
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