Indian exporters are exporting various goods like- Leather Bags, Leather Wallets, Handicrafts, Mobile Accessories, Soft toys, etc. to countries like- Dubai, Kuwait, Middle-east, Australia, Europe, etc. since long time.
Also, with the advancement of internet, many of the young entrepreneurs have started to export goods through online e-Commerce websites like- Amazon.com (USA), Amazon.co.uk, ebay.com (USA), etc.
Did you know that, Exporters are eligible for 100% refund of following taxes paid by them on export of goods-
(1) Central Excise Duty (12.5%),
(2) VAT/CST (5%-14.5%),
(3) Service Tax (15%), etc.
Also, Exporters are eligible for various export incentives which is about 4%-8% (as per product exported) of value of goods exported.
Most of the exporters are not aware about the incentives available to them which reduces their overall profit margin by 25%-30%.
Due to lack of awareness, many exporters export their goods as free samples and then receive Foreign Inward Remittance in their accounts or accounts of their family members & relatives. After withdrawing the export proceeds, they close such account without compliance with RBI Circulars in respect to closure of FIRC which results in serious non-compliance of Foreign Exchange Regulation Act, 1999 (FERA). Also, the Bank has your KYC details which are submitted by the Bank to the Reserve Bank of India (RBI) after 12 months from the date of receipt of foreign inward remittance. RBI then traces such defaulters and harsh action may be taken under the Prevention of Money Laundering Act (PMLA).
Such export proceeds remain unreported in Income Tax while submitting annual income tax return.
What if your export margins can increase by 25%-30% ?
What if you can comply with RBI/ FERA norms ?
What if you can report your actual sales & net profit figures to the Income Tax department ?
Yes, you can do it…!!
You may be located anywhere in India, we shall assist you in:
(1) Obtaining refund of- Central Excise, VAT/ CST, Service Tax paid on goods exported out of India,
(2) Obtaining various export incentives provided by Government of India,
(3) Obtaining Bank Loan for purchase of goods for exports,
(4) Proper accounting of purchases, sales, income, expenses, bank reconciliation, Receivable/ Payable monitoring, etc.
(5) Filing of VAT Returns, Income Tax Return, etc.
(6) Clearance of e-BRC with your AD Banker for Foreign Inward Remittance Certificate (FIRC) for amount received for inward remittance,
(7) Payment of Import Duties in the country of export,
(8) Payment of VAT/ Sales & Use Tax in country of export (for USA & UK),
(9) Payment of Federal taxes/ Income taxes in country of export (for USA & UK).
We relieve you from all the hassles, all the tough part, the calculations, the reconciliations, the taxes… all of them… and allow you to concentrate on the main part of your business… INCREASE SALES… INCREASE PROFITS…!!
Author: CA Vikram Jain