MM TAX CLUB

Clarification on Banknote

The Reserve Bank of India (RBI) has come across reports circulating in certain sections of the media alleging missing of banknotes printed by banknote printing presses. The RBI emphasizes that these reports are not correct.

These reports are based on erroneous interpretation of information collected under the Right to Information Act, 2005 from the printing presses. It may be noted that all banknotes supplied from printing presses to RBI are properly accounted for. It is further informed that there are robust systems in place for reconciliation of banknotes printed at the presses and supplied to RBI which include protocols to monitor production, storage and distribution of banknotes.

Members of the public are, therefore, requested to rely on the information published by RBI from time to time in such matters.

In exercise of the powers conferred by section 157 read with section 84 of the Customs Act, 1962 (52 of 1962), the Central Board of Indirect Taxes and Customs hereby makes the following regulations to further amend the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010,

1. Short title and commencement.- (1) These regulations may be called the Courier Imports and  Exports  (Electronic  Declaration and  Processing) (Second  Amendment) Regulations, 2023.

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

2. In the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010, in Form HA, in the table, under heading D, under column (A), for the words, letters, numbers and brackets

"Whether export consignment contains jewellery falling under CTH 7117 or CTH 7113 (Yes/ No)"

the words, letters, numbers, and brackets

“If export consignment contains jewellery falling under CTH 7117 or CTH 7113, please state whether the facility of re-import will be availed for the said jewellery (Yes/No)”, shall be substituted

Note: - The principal notification No. 36/2010-Customs (N.T.), dated the 5th May, 2010 was published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i), vide number G.S.R. 385(E), dated the 5th May, 2010 and was last amended, vide notification No. 23/2023-Customs (N.T.), dated the 31st  March 2023, published in the Gazette of  India, Extraordinary, Part II, Section 3, sub-section (i), vide number G.S.R. 244(E), dated the 31stMarch 2023.

Recently, the Gurugram Zonal Unit of Directorate General of GST Intelligence have unearthed a major fraudulent Input tax Credit (ITC) racket involving 461 shell/fake entities, which had passed on fraudulent ITC of Rs. 863 crore. In this matter till date, two key operatives have been arrested.

This racket of passing on of fraudulent ITC through fake shell entities was detected, when based on intelligence a search was carried out at a secret office being operated for this purpose. Huge number of forged/ morphed/ fake soft copies of documents like rent agreements, electricity bills, aadhar card, driving license, PAN card, etc. were detected in the laptops resumed from this secret office, which were used to create and operate their fake entities. The forensic examination of the laptops, devices seized from this office led to the eventual detection of ITC fraud to the tune of Rs. 863 crore involving fake 461 entities and arrest of two key operatives. Initial investigations indicates that the fraudulent ITC credit has eventually travelled to the highly evasion prone metal/iron & steel sector.

The figures of Direct Tax collections for the Financial Year 2023-24, as on 17.06.2023 show that net collections are at Rs. 3,79,760 crore, compared to Rs. 3,41,568 crore in the corresponding period of the preceding Financial Year i.e. FY 2022-23, representing an increase of 11.18%.

The Net Direct Tax collection of Rs. 3,79,760 crore (as on 17.06.2023) include Corporation Tax (CIT) at Rs. 1,56,949 crore (net of refund) and Personal Income Tax (PIT) including Securities Transaction Tax(STT) at Rs. 2,22,196 crore (net of refund).

The Gross collection of Direct Taxes (before adjusting for refunds) for the FY 2023-24 stands at Rs. 4,19,338 crore as compared to Rs. 3,71,982 crore in the corresponding period of the preceding financial year, registering a growth of 12.73% over collections of FY 2022-23.

The Gross collection of Rs. 4,19,338 crore includes Corporation Tax (CIT) at Rs. 1,87,311 crore and Personal Income Tax (PIT) including Securities Transaction Tax(STT) at Rs. 2,31,391 crore. Minor head wise collection comprises Advance Tax of Rs. 1,16,776 crore; Tax Deducted at Source of Rs. 2,71,849 crore; Self-Assessment Tax of Rs. 18,128 crore; Regular Assessment Tax of Rs. 9,977 crore; and Tax under other minor heads of Rs. 2,607 crore.

The Advance Tax collections for the first quarter of the FY 2023-24 stand at Rs. 1,16,776 crore as on 17.06.2023, against Advance Tax collections of Rs. 1,02,707 crore for the corresponding period of the immediately preceding Financial Year i.e. 2022-23, showing a growth of 13.70%. The Advance Tax collection of Rs. 1,16,776 crore as on 17.06.2023 comprises Corporation Tax (CIT) at Rs. 92,784 crore and Personal Income Tax (PIT) at Rs. 23,991 crore.

Refunds amounting to Rs. 39,578 crore have also been issued in the FY 2023-24 till 17.06.2023, as against refunds of Rs. 30,414 crore issued during the corresponding period in the preceding Financial Year 2022-23, showing a growth of 30.13%.

In order to ensure availability of edible oil to consumers at affordable prices, the Central Government has reduced the Basic Import Duty on Edible Oils. An order to this effect was issued by the Department of Food and Public Distribution vide Notification No. 39/2023 - Customs, dated 14th June, 2023 wherein the Basic Import Duty on Refined Soyabean Oil (HS Code 15079010) and Refined Sunflower Oil (HS Code 15121910) has been reduced from 17.5% to 12.5% with effect from today. This will remain in force till 31st March, 2024.

The decision is expected to augment the earlier measures taken by the Government to reduce the prices of Edible Oils in the domestic market. The Basic Import Duty is an important factor which impacts the landed cost of Edible Oils which in turn affects the domestic prices. Reduction in Import Duty on Refined Sunflower Oil and Refined Soyabean Oil will benefit the consumers, as it will help in easing the domestic retail prices.

The Import Duties on Refined Soyabean Oil and Refined Sunflower Oil were last reduced from 32.5% to 17.5% in October, 2021. This was done as during the year 2021, the international prices were very high, which was getting reflected in the domestic prices as well.

The Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution is closely monitoring the prices of Edible Oil in the country and ensuring its adequate availability to consumers.