Payment of advance does not create any lien over the supplier’s assets. Your rights arise only from the contract between you and the supplier. In case of any damage to the unfinished work at the supplier’s end, you have no liability or obligations and so, you need not take insurance for that. You can hold the supplier responsible for shipment of machine in accordance with the contract, regardless of any untoward incidents at this end.
Q. Is it mandatory to ask a foreign exporter to declare in his invoice that this import into India is as per FTP 2015-20, as extended by one year, and the item is freely importable or restricted (subject to DGFT's permission)?
No. The foreign party is not expected to know the details of our FTP.
Q. Under EPCG scheme, can we opt to pay the IGST at the time of import and take credit of the same?
As per Para 5.01 (d) of FTP, in case Integrated Tax and Compensation Cess are paid in cash on imports under EPCG, incidence of the said Integrated Tax and Compensation Cess would not be taken for computation of net duty saved, provided Input Tax Credit is not availed. So, the option to pay IGST is there, but if you take Credit of it, your export obligation will have to be calculated as though you availed exemption of IGST. If, however, you do not take Credit of IGST paid, you need not count it as duty saved for calculating export obligation.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.