Dated 6th October, 2020
As per the discussionbetween Ministry of Commerce & Ministry of Steel with Engineering Exports Promotion Council (EEPC) and with 6 steel producers namely SAIL, RINL, TATA Steel Ltd, JSW, JSPL and AMNS (herein after referred to as ‘Steel Producers’) an office memorandum was released1wherein it was agreed between EEPC and Steel Producers that Steel Producers will supply steel to MSME members of EEPC at export parity price and such supply will be treated as deemed export. The supply of steel by steel producers as stated above would also cover supply through their service centers/ distributors/ dealers/ stockyard.Accordingly,amendments have been made both in the Foreign Trade policy and Procedures to extend such benefit of deemed exports to such producers along with their units.The broad features of the scheme is stated herein below:
EEPC and Steel Producers have agreed on the following procedure
EEPC members while booking the orders with Steel Producers, shall obtain an Advance Release Order (ARO) in favour of the steel company. MEIS benefit shall be claimed by the EEPC members but the MEIS amount on applicable FOB value shall be added in the basic price of steel.
The FTP has also extended the benefit of Duty Drawback2to even Steel Producers who are supplying steel against Advance Authorization through their service centers/distributors/dealers/stockyard, provided such supplies are made in accordance with Ministry of Steel office memorandum1 . Moreover, Steel Producers shall have to raise invoice against Advance Authorisation holder and such supplies can be made through service centers/distributors/dealers/stockyard who will also raise an invoice to steel producers bearing a cross reference for such supplies.
In furtherance to above, subsequent changes have been made in Handbook of procedures3wherein for AROs issued for domestic procurement of steel at export parity price details of service centers/distributors /dealers /stockyard of steel producers from where the steel is being produced is mentioned along with countersigning by EEPC.
The aforesaid change has been bought with the perspective of boosting make in India concept and promoting exports. The benefit of duty drawback scheme has been extended not only to 6 steel producers as illustrated above but also to their service centers/distributors/ dealers/ stockyard from where the supply of steel is made.
BT Associates is a premier indirect tax consultant in kolkata, delivering high quality services to client in the area of indirect taxation.GST idea is a unit of BT Associates formed to share knowledge on stakeholders. We cover entire gamut from technical papers to recent development including IT under GST
BT Associates is a premier indirect tax consultant in kolkata, delivering high quality services to client in the area of indirect taxation.GST idea is a unit of BT Associates formed to share knowledge on stakeholders. We cover entire gamut from technical papers to recent development including IT under GST
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