That is why Prices of Vehicles are likely to be up from January 2015.
Excise Duty Benefit withdrawn -Unjustified -Indian Automobile Industry
Withdrawal of the excise duty benefits for the automobile industry from 1st Jan-2015 is simply devastating for the Indian automobile industry as well as for the long term industry growth. I don't understand what are the Indian government's rationales behind formulation of sector specific policies which kills the growth of a particular Industry? As a macroeconomic researcher and as journalist I have the right of pointing to the gaps in policy making which will create a adverse long term affect on the industry or economy. We have seen historically these types of mistakes committed by the government and the prolonged crisis suffered by industry. The point of discussion is that not only the one of the particular industry gets banged against the wall but also the ancillary industries which also gets affected and the affects rolls out to employment opportunities either drying up or pink slips are being handed over in the long term.
In 2012 the UPA government increased its duties on SUV's and now again the same thing is being proposed by the current government. Then suddenly in 2013 it reduced after destroying the growth prospects of the Industry, at time when the sector was in its worst phase. When crude prices are low and very much supportive for the Indian buyers to buy their dream car then does this rate hike/revoke of excise duties proposal from 1st Jan 2015 sounds good? It would have been prudent that the government should have reduced the duty/or kept the excise unchanged to support the sector which may have resulted in increase in automobile sector growthand resultant increase in growth of ancillary sector.When crude prices are low and we all know that crude prices would remain on the lower side then its clear that people would plan to buy automobile. Increase in volume would result multiple taxation earnings for the government as volumes pickups in raw material consumption and production of various end user based products.
If we make a quick look towards the automobile market performance we witness clearly that over the last couple of years slow down of the Indian economy followed with high interest cost and prices have deterred the buyers from the market.
We should not forget that automobile is one of the asset classes which is directly linked with interest rates. Hence when we all projecting for a rate cut over the next 1 years time frame, at the same time when crude prices are low the reducing or keeping the taxes unchanged would have spooked more buyers resulting more production and consumption. That's why I raised the question on the very beginning about the rationale behind the hike/revoke of benefits of duties and taxes for the automobile when the industry is very much well positioned for growth.
We are all talking about Indian economic growth and using very strong phrases and theories but did we ever calculate the place from where this growth will generate. If, domestic people are unable to buy ,then how the government earns its revenues from slow moving industry. Now this same statement also eradicates the economist theories who are justifying the rate hike to fill up the government pocket through high taxes incomes. Now when we are increasing the taxes and duties of an industry then obviously the demand of the product will take a hit. Now at the same time the government is inviting FDI investors to start manufacturing in India. If the market becomes less competitive then how it makes senses for them to start manufacturing here. We always forget that an economic or an industry growth does not happen only based on one sided policies. When the Indian IT industry grew it grew riding upon the wheel of SEZ which was a tax sop based incentive scheme promoting business for the Indian economy for the long term.
Increasing taxes on various industries and products to increase government revenue is a wrong theory in today's market conditions. When global economy is under severer slowdown then domestic consumption is the best strategy to grow the business. We are just killing the industry and the ancillary industries associated with the same. Now theory has erupted while is discussing the same with my friends. They said that if duties and taxes are being hikes or benefits are being revoked then the same would adjust somewhere as luxury goods and inferior goods have a game to play. In today's economic era inferior and luxury goods has lost its meaning since technology has replaced the productivity and availability of the goods. Further automobile is the best way to grow and develop business and grow the rural connectivity. The initial price hike might appear to be negligible but it always has a long term affect on the industry and economy. Increasing duties of cigarettes is justified but not on automobile industry which is linked with multiple industries and employments.
A special thanks to CMA Amit Apte for their support and inputs on the same. Without their help I should not have been able to write the same.
1. Whole Time Member, SEBI, has passed an Order on December 30, 2014 providing the exit to Ludhiana Stock Exchange Limited (LSE). LSE is the eighth Stock Exchange to exit under the exit policy.
Exit order in respect of Ludhiana Stock Exchange Ltd
1. Whole Time Member, SEBI, has passed an Order on December 30, 2014 providing the exit to Ludhiana Stock Exchange Limited (LSE). LSE is the eighth Stock Exchange to exit under the exit policy.
2. SEBI vide Circular dated May 30, 2012 had issued the policy for exit of stock exchanges. This contained details of the conditions for exit of de-recognised/non-operational stock exchanges inter-alia including treatment of assets of de-recognised/non-operational exchanges and a facility of dissemination Board for companies listed exclusively on such exchanges, while taking care of the interest of Investors.
3. Further, the Income Tax Authorities, Ministry of Corporate Affairs and the State Government of Punjab are being intimated about the exit of LSE, for appropriate action at their end.
4. The full text of the order is available in SEBI's website: www.sebi.gov.in
Mumbai – PR No. 185/2014- December 31, 2014 (Source- SEBI)
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Exit order in respect of Ludhiana Stock Exchange Ltd 1. Whole Time Member, SEBI, has passed an Order on December 30, 2014 providing the exit to Ludhiana Stock Exchange Limited (LSE). LSE is the eighth S... | |||||||
Revised Guidelines for Issue / Modification of IEC Number
Public Notice. 79/(RE-2013)/2009-2014
Dated the 31 December, 2014
Subject: Amendments in "Detailed Guidelines for Issue / Modification of Importer Exporter Code Number (IEC)" as notified vide Public Notice No. 76 dated the 27th of November, 2014 and Para 9.1 of Handbook of Procedure vol.1 (2009-14)
In exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy (2009-2014), the Director General of Foreign Trade hereby amends Part V of the "Detailed Guidelines for Issue / Modification of Importer Exporter Code Number (IEC)" as notified vide Public Notice No. 76 (RE-2013)/2009-2014 dated the 27th of November, 2014 and Para 9.1 of Handbook of Procedure vol.1 (2009-14)
- The amended Part V of the "Detailed Guidelines for Issue / Modification of Importer Exporter Code Number (IEC)" is highlighted in bold and would read as under:
| V: Tick and upload the requisite documents as detailed below: | ||
| A | Proprietorship | · Digital Photograph (3x3cms) of the Proprietor. · Copy of PAN card of the Proprietor. · Copy of Passport (first & last page)/Voter's I-Card/ Driving Licence/UID (Aadhar card) (any one of these). · Sale deed in case business premise is self-owned; or Rental/Lease Agreement, in case office is rented/ leased; or latest electricity /telephone bill. · Bank Certificate as per ANF 2A(I)/ Cancelled Cheque bearing pre-printed name of applicant and A/C No. |
| B | Partnership firm | · Digital Photograph (3x3cms) of the Managing Partner. · Copy of PAN card of the applicant entity. · Copy of Passport (first & last page)/Voter's I-Card /UID (Aadhar Card) /Driving Licence/PAN (any one of these) of the Managing Partner signing the application. · Copy of Partnership Deed. · Sale deed in case business premise is self-owned; or Rental/Lease Agreement, in case office is rented/ leased; or latest electricity /telephone bill. · Bank Certificate as per ANF 2A (I)/Cancelled Cheque bearing pre-printed name of the applicant entity and A/C No. |
| C | LLP firm | · Digital Photograph (3x3cms) of the Designated Partner/Director of the Company signing the application. · Copy of PAN card of the applicant entity. · Copy of Passport (first & last page)/Voter's I-Card /UID (Aadhar Card) /Driving Licence/ PAN (any one of these) of the Managing Partner/Director signing the application. · Certificate of incorporation as issued by the RoC · Sale deed in case business premise is self-owned; or Rental/Lease Agreement, in case office is rented/ leased; or latest electricity /telephone bill. · Bank Certificate as per ANF 2 A(I)/Cancelled Cheque bearing pre-printed name of the company and A/C No . |
| Government Undertaking | ||
| Public Limited Company | ||
| Private Limited Company | ||
| Section 25 Company | ||
| D | Registered Society | · Digital Photograph (3x3cms) of the signatory applicant/Secretary or Chief Executive. · Copy of PAN card of the applicant entity. · Copy of Passport (first & last page)/Voter's I-Card /UID (Aadhar Card) /Driving Licence/ PAN (any one of these) of the Secretary or Chief Executive/ Managing Trustee signing the application. · Sale deed in case business premise is self-owned; or Rental/Lease Agreement, in case office is rented/ leased; or latest electricity /telephone bill. · Registration Certificate of the Society / Copy of the Trust Deed · Bank Certificate as per ANF 2A(I)/Cancelled Cheque bearing pre-printed name of the Registered Society or Trust and A/C No. |
| Trust | ||
| E | HUF | · Digital Photograph (3x3cms) of the Karta.· Copy of PAN card of the Karta. · Copy of Passport (first & last page)/Voter's I-Card/ UID (Aadhar card)/ Driving Licence (any one of these) of the Karta. · Sale deed in case business premise is self-owned or Rental/Lease Agreement, in case office is rented/ leased or latest electricity /telephone bill. · Bank Certificate as per ANF 2A(I)/ Cancelled Cheque bearing pre-printed name of applicant and A/C No. |
- Para 9.1 of Handbook of Procedure vol.1 is being modified to be read as under:
Applicants seeking modification in IEC for any change in name /address, change in Partners/Directors, change in nature of concern e.g. Private Limited to Public Limited; change in type of activity e.g. from merchant to manufacturer exporter; or addition of Branch Offices/factory, etc. will be required to submit online application for modification in IEC and pay Rs 500 /- as application fee.
4. Effect of this Notification: Part V of the "Detailed Guidelines for Issue / Modification of Importer Exporter Code Number (IEC)" of ANF 2A as notified vide Public Notice No. 76 (RE-2013)/2009-2014 dated the 27th of November, 2014 , is modified to provide for inclusion of certain additional documents, as highlighted in Para 2 above. Further, Para 9.1 of Handbook of Procedure vol.1 stands modified to the effect that applicants will have to submit online application for modification in IEC and pay Rs 500 /- as application fee.
(Pravir Kumar)
Director General of Foreign Trade
E.Mail:dgft@nic.in
[F.No.01/93/180/20/AM-13/ PC-2(B)]
From 1.1.2015, all applications for IEC would be made in online mode only. All applicants will have to fill IEC application and also upload all required documents online. All IEC Certificates would also be issued by the concerned RA (with his digital signature) in digital format only. The applicant can take a print out of the digitally signed IEC, as and when required.
Guidelines for processing of Online IEC Applications
Policy Circular No.15 (RE-2013)/2009-2014
Dated 31st December, 2014
To
All Regional Authorities
Subject: Guidelines for Regional Authorities (RAs) to process Online IEC Applications
The following guidelines are laid down as instructions for the Regional Authorities to process Online IEC Applications:
The following guidelines are laid down as instructions for the Regional Authorities to process Online IEC Applications:
Part A: General Information:
1. From 1.1.2015, all applications for IEC would be made in online mode only. All applicants will have to fill IEC application and also upload all required documents online.
2. All IEC Certificates would also be issued by the concerned RA (with his digital signature) in digital format only. The applicant can take a print out of the digitally signed IEC, as and when required.
3. Applicants with digital signatures would sign the application with their digital signature and submit the same online.
4. In case the applicant does not possess digital signature, then he would be required to take a print out of the filled up application (without attachments), sign the same and submit it to the concerned RA, either by Post or at the counter.
5. All applications must be processed and disposed within two working days of their receipt.
6. RAs would record their observations with reference to the application, based on which either an e-IEC or a rejection letter, along with the reasons for rejection, would be issued. RA would also print the office note generated by the system on the application received for their office record.
7. There is no provision for issue of deficiency letter in the new system. If the IEC application is rejected, the applicant would be required to file a fresh application.
8. The authorised officer (not below the rank of FTDO) in the Regional Authorities (RAs) as in Appendix 1 of Handbook of Procedure (vol.1) (2009-2014) will be the competent authority to issue/reject applications for IEC.
Part B: What to Examine/Verify:
1. Applicant entity's details:
a) In case of Proprietorship firms: To verify Name, Date of Birth and PAN, as filled in the application form and as mentioned in the uploaded PAN, from the website of Income Tax Department.
b) In case of Partnership firms :
i. To verify Name, Date of Incorporation and PAN of the entity, as filled in the application form and as mentioned in the uploaded PAN, from the website of Income Tax Department.
ii. To verify Name, Date of Birth and PAN of the Partners as filled in the application form, from the website of Income Tax Department.
c) In case the entity is Limited Liability Partnership/ Private/ Public/Govt. Undertaking / Section 25 Company:
i. To verify Name, Date of incorporation and PAN of the entity, as filled in the application form and as mentioned in the uploaded PAN, from the website of Income Tax Department.
ii. To verify and cross-check the number, names and other details of Partners/Directors from the LLPIN/CIN information available on the Ministry of Corporate Affair's website.
d) In case the entity is a Registered Society/Trust or a HUF:
To verify Name, Date of incorporation and PAN of the Society/Trust as filled in the application form and as mentioned in the uploaded PAN, from the website of Income Tax Department.
2. Applicant entity's address verification: To verify the applicant entity's address cross-check the address as indicated in Part A (ii) with that of the address as mentioned in the Sale deed (in case business premises is self-owned); or Rental / Lease Agreement (in case office space is rented/ leased); or latest electricity /telephone bill.
3. Verification of the bank details of the applicant entity: Name of the Account Holder, Account number, Bank's name and Branch and IFS code as filled in by the applicant in Part A (viii) needs to be cross-checked from the cancelled cheque/ bank certificate as uploaded.
Part C: Procedure for verification of details from websites by RAs:
· RAs can cross-check and verify Applicant entity's Name, Date of Birth/Date of Incorporation, PAN of the entity from the link as below:
https://incometaxindiaefiling.gov.in/e-Filing/Services/KnowYourPanLink.html
· The LLPIN/CIN details of the Firm/Company may similarly be cross verified from the Ministry of Corporate Affair's website: http://www.mca.gov.in/MCA21/Master_data.html , by taking the steps listed therein.
(S.P. Roy)
Joint Director General of Foreign Trade
E-mail: shyama.roy@nic.in
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24×7 Customs clearance – regarding
Circular No. 19/2014-Customs
Dated 31.12.2014
Subject: 24×7 Customs clearance – regarding
Attention is invited to Board Circular No. 22/2012-Customs, dated 07.08.2012 and subsequent Instruction No.3, dated 31.05.2013 on the subject of 24×7 Customs clearance facility at specified sea ports and air cargo complexes for identified categories of import and export goods.
2. Finance Minister has in the Budget Speech for 2014-15 announced that the 24×7 Customs clearance facility would be deepened and extended. Thus, the existing 24×7 Customs clearance facility would be made available to 13 more airports in respect of all export goods and to 14 more sea ports in respect of specified import and export goods.
3. Board has undertaken detailed inter-ministerial consultations to ensure stakeholder participation in making available the 24×7 Customs clearance facility, as per the aforementioned Budget announcement. The objective is to ensure that besides the Customs, the officers of all agencies concerned with the import/export process including custodians, Customs Brokers etc. proactively participate in making this facility a success. As a result, all agencies are now committed to work hand in hand with the Customs to make available this facility. Related issues such as availability of required personnel, keeping open the delivery gates 24×7 at air cargo complexes etc. have also been resolved. Board has also advised the Chief Commissioners of Customs concerned to closely monitor this facility and resolve outstanding issues, if any, through interaction with stakeholders at the field level. It is expected that an effective 24×7 Customs clearance facility will greatly facilitate trade and reduce transaction cost.
4. Board has decided that with effect from 31.12.2014 the facility of 24×7 Customs clearance for specified imports viz. goods covered by 'facilitated' Bills of Entry and specified exports viz. factory stuffed containers and goods exported under free Shipping Bills will be made available, at the following 18 sea ports:
| S.No. | Sea Port | S.No. | Sea Port | S.No. | Sea Port |
| 1. | Chennai | 2. | Cochin | 3. | Ennore |
| 4. | Gopalpur | 5. | JNPT | 6. | Kakinada |
| 7. | Kandla | 8. | Kolkata | 9. | Mumbai |
| 10. | New Mangalore | 11. | Marmagoa | 12. | Mundra |
| 13. | Okha | 14. | Paradeep | 15. | Pipavav |
| 16. | Sikka | 17. | Tuticorin | 18. | Vishakapatnam |
5. Board has also decided that with effect from 31.12.2014 the facility of 24×7 Customs clearance for specified imports viz. goods covered by facilitated Bills of Entry and all exports viz. goods covered by all Shipping Bills will be made available, at the following 17 air cargo complexes:
| S.No. | Air Cargo Complex | S.No. | Air Cargo Complex | S.No. | Air Cargo Complex |
| 1. | Ahmedabad | 2. | Amritsar | 3. | Bangalore |
| 4. | Chennai | 5. | Coimbatore | 6. | Cochin |
| 7. | Calicut | 8. | Delhi | 9. | Goa |
| 10. | Hyderabad | 11. | Indore | 12. | Jaipur |
| 13. | Kolkata | 14. | Mumbai | 15. | Nashik |
| 16. | Thiruanantapuram | 17. | Vishakhapatnam | ||
6. Chief Commissioners of Customs are directed to deploy sufficient number of officers on 24×7 basis at the specified locations and give wide publicity to this trade facilitation measure. Their active and effective involvement in making the 24×7 Customs clearance facility a success will be closely monitored by the Board.
7. Suitable Public Notice/Standing Order may be issued for the benefit of all stakeholders and Departmental officers.
8. Difficulty faced, if any, may be brought to the notice of the Board.
F. No. 450/25/2009-Cus IV
Yours faithfully,
(Pawan Khetan)
OSD (Cus IV)
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