MM TAX CLUB

Notification No. 64/2023 dated August 17, 2023

Income-tax (Seventeenth Amendment) Rules, 2023.

In exercise of the powers conferred by section 295 of the Income-tax Act 1961 (hereinafter referred to as ‘Act’), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:––

1. Short title and commencement.–– (1) These rules may be called the Income-tax (Seventeenth Amendment) Rules, 2023.

                                (2) They shall come into force from the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), for rule 26, the following rule shall be substituted, namely:––

“26. Rate of exchange for the purpose of deduction of tax at source on income payable in foreign currency.––

For the purpose of deduction of tax at source on any income payable in foreign currency, the rate of exchange for the calculation of the value in rupees of such income payable––

(i) to an assessee outside India;

(ii) to a Unit located in an International Financial Services Centre;

(iii) by a Unit located in an International Financial Services Centre to an assessee in India,

shall be the telegraphic transfer buying rate of such currency as on the date on which the tax is required to be deducted at source under the provisions of Chapter XVIIB by the person responsible for paying such income

Explanation.–– For the purposes of this rule, ––

(i) “International Financial Services Centre” shall have the meaning assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005);

(ii) "telegraphic transfer buying rate", in relation to a foreign currency, means the rate or rates of exchange adopted by the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), for buying such currency, having regard to the guidelines specified from time to time by the Reserve Bank of India for buying such currency, where such currency is made available to that bank through a telegraphic transfer;

(iii) “Unit” shall have the meaning assigned to it in clause (zc) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005).”.

The DGFT vide Public Notice No. 28/2023 dated August 18, 2023 has issued an updated List of banks authorised to import gold/silver under Appendix 4B of Handbook of Procedures, 2023.

In exercise of the powers conferred under paragraph 1.03 & 2.04 of the Foreign Trade Policy (FTP), 2023, as amended from time to time, the Director General of Foreign Trade hereby makes the following amendments in Part A and B under Appendix 4B of Handbook of Procedure. 2023:

A. List Of Banks Authorised By Reserve Bank Of India To Import Both Gold And Silver For FY 2023-24 Valid upto March 31, 2024

B. List Of Banks Authorised By Reserve Bank Of India To Import Only Gold For FY 2023-24 Valid upto March 31, 2024

Effect of this Public Notice:

List of banks authorised to import gold/silver under Appendix 4B of Handbook of Procedures, 2023 has been updated

Circular No. 20/2023-Customs Dated 07^th August, 2023

Authorization of Booking Post Offices and their corresponding Foreign Post Offices in terms of the Postal Export (Electronic Declaration and Processing) Regulations, 2022

Attention   is   drawn   to   the   Postal   Export   (Electronic   Declaration   and   Processing) Regulations, 2022 issued under Notification no. 104/2022-Customs (N.T.) dated 09.12.2022, the Guidelines for their implementation in  Circular  no.  25/2022-Customs dated 09.12.2022 and Circular No.  06/2023-Customs dated 01.03.2023 vide which authorization of 122 booking post offices by Department of Post was communicated.

2. In terms of Regulation 6(1), the Department of Post vide O.M.  Dated 31.07.2023  (copy enclosed) has authorized 715 Booking Post Offices to accept consignments for export. The list of Booking Post Offices and the corresponding Foreign Post Offices is also enclosed.

3. The above is for your information, necessary action and implementation. Difficulty, if any, in implementation may kindly be brought to notice of the Board

Notification No. 36/2023-Central Tax Dated 4^th Aug 2023

Seeks to notify special procedure to be followed by the electronic commerce operators in respect of supplies of goods through them by composition taxpayers

In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on the recommendations of the Council, hereby notifies the electronic commerce operator who is required to collect tax at source under section 52 as the class of persons who shall follow the following special procedure in respect of supply of goods made through it by the persons paying tax under section 10 of the said Act (hereinafter referred to as the said person), namely: —

(i) the electronic commerce operator shall not allow any inter-State supply of goods through it by the said person;

(ii) the electronic commerce operator shall collect tax at source under sub-section (1) of section 52 of the said Act in respect of supply of goods made through it by the said person and pay to the Government as per provisions of sub-section (3) of section 52 of the said Act; and

(iii) the electronic commerce operator shall furnish the details of supplies of goods made through it by the said person in the statement in FORM GSTR-8 electronically on the common portal.

This notification shall come into force with effect from the 1st day of October, 2023.

NOTIFICATION No. 37/2023 – Central Tax Dated 4^th August, 2023

                In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on the recommendations of the Council, hereby notifies the electronic commerce operator who is required to collect tax at source under section 52 as the class of persons who shall follow the following special procedure in respect of supply of goods made through it by the persons exempted from obtaining registration (hereinafter referred to as the said person) in accordance with the notification issued under sub-section (2) of section 23 vide notification number 34/2023- Central Tax, dated the 31st July, 2023, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 577(E), dated the 31st July, 2023, namely: —

1. the electronic commerce operator shall allow the supply of goods through it by the said person only if enrolment number has been allotted on the common portal to the said person;
2. the electronic commerce operator shall not allow any inter-State supply of goods through it by the said person;
3. the electronic commerce operator shall not collect tax at source under sub-section (1) of section 52 in respect of supply of goods made through it by the said person; and
4. the electronic commerce operator shall furnish the details of supplies of goods made through it by the said person in the statement in FORM GSTR-8 electronically on the common portal.

2. Where multiple electronic commerce operators are involved in a single supply of goods through electronic commerce operator platform, “the electronic commerce operator” shall mean the electronic commerce operator who finally releases the payment to the said person for the said supply made by the said person through him.

3. This notification shall come into force with effect from the 1st day of October, 2023.