MM TAX CLUB

DGFT Public Notice No. 09/2023 dated April 25, 2023

In exercise of powers conferred under Paragraph 1.03 and 2.04 of the Foreign Trade Policy, 2023, as amended from time to time, the Director General of Foreign Trade hereby makes the following amendment in the provision of Para 4.12(vi) of the Handbook of Procedures 2023:

Advisory on Bank Account Validation

1. GSTN is pleased to inform you that the functionality for bank account validation is now integrated with the GST System. This feature is introduced to ensure that the bank accounts provided by the Tax Payer is correct.

2. The bank account validation status can be seen under the Dashboard→My Profile→Bank Account Status tab in the FO portal. Tax Payers will also receive the bank account status detail on registered email and mobile number immediately after the validation is performed for his declared bank account.

3. Post validation, any bank account number in the database would have one status out of the below mentioned four status types. The exact details of the accounts can be seen by hovering mouse over these icons in the Tax Payers’ dashboard in FO Portal.

4. Whenever, the Tax Payer is shown ‘Failure’ icon with further details such as

- The entered PAN number is invalid.

- PAN not available in the concerned bank account.

- PAN Registered under GSTIN, and the PAN maintained in the Bank Account are not same.

- IFSC code entered for the bank account details is invalid.

In these cases, the Tax Payer is expected to ensure that he has entered correct bank details and the KYC is completed by bank for his bank account.

5. Whenever, the Tax Payer is shown, the status of his bank account as ‘Success With Remark’ icon with details “The account cannot be validated since the bank is not integrated with NPCI for online bank account validation”, the Tax Payer should provide alternate bank account number so that it can be revalidated to expedite further online processes.

6. If the account status is shown as “Pending for Validation” then please wait since the account will be validated by NPCI. 7. The Tax Payer at any time can add/delete the bank account details and new account details will be validated.

The DGFT vide Public Notice No. 07/2023 April 18, 2023 has issued amendments in the Amnesty scheme for one time settlement of default in export obligation by Advance and EPCG authorization holders.

In exercise of powers conferred under Paragraph 1.03 of the Foreign Trade Policy (FTP) 2023, as amended from time to time, the Director General of Foreign Trade hereby makes the following amendment in the para II(ii) of Public Notice No. 2/2023 dated April 01, 2023 notifying the Amnesty Scheme 

II) ii. All pending cases of the default in meeting Export Obligation (EO) of authorizations mentioned in para (I) above can be regularised by the authorisation holder on payment of all customs duties that were exempted in proportion to unfulfilled Export Obligation and interest payable is capped at maximum of 100% of such duties exempted on which interest is payable. However, no interest is payable on the portion of Additional Customs Duty and Special Additional Customs Duty.

Effect of this Public Notice: Public Notice No. 2/2023 dated April 01, 2023 is amended to clarify the duties on which interest is payable.

Trade Notice No. 04/2023-24 Dated: 21.04.2023

Amendment under Interest Equalisation Scheme in respect of UIN

Attention of Trade and Industry is drawn towards Trade Notice no. 03/2023-24 dated 20.04.2023, wherein the eligible Interest Equalisation beneficiaries w.e.f 01.05.2023 were required to submit an Acknowledgement consisting of UIN which would be associated with a particular bank only for a ONE-TIME disbursement, also applicable where the credit is rolled over.

2. The amendments stated under the above-mentioned Trade Notice are deferred in view of the operational challenges expressed by the beneficiaries of the scheme and the banks. The revised guidelines are as follows:

• An Acknowledgement consisting of UIN, valid for a financial year shall be unique to a specific bank. If a scheme beneficiary desires to take advantage of the benefits of the scheme from multiple banks, a new UIN must be provided for each bank.

3. This issues with the approval of the Competent Authority.

As per recent update from income tax portal on 21^st April 2023, Form 10 has been made available on income tax portal for filing.

Form 10 has been introduced to Exercise of option etc. under Explanation 3 to the third proviso to clause (23C) of section 10 or section 11 of Income Tax Act, by the CBDT. It required to be filed for the registration of religious /institution / trust / any university / other educational institution /any hospital / other medical institution/association before  Assessing Officer/Prescribed Authority of Income Tax