Exchange Rate of Foreign Currency Relating to Imported and Export Goods Notified -21.7.2016
Exchange Rate of Foreign Currency Relating to Imported and Export Goods Notified
In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Central Board of Excise and Customs No.96/2016-CUSTOMS (N.T.), dated 06th July, 2016, except as respects things done or omitted to be done before such supersession, the Central Board of Excise and Customs hereby determines that the rate of exchange of conversion of each of the foreign currencies specified in column (2) of each of Schedule I and Schedule II annexed hereto, into Indian currency or vice versa, shall, with effect from 22nd July, 2016, be the rate mentioned against it in the corresponding entry in column (3) thereof, for the purpose of the said section, relating to imported and export goods.
SCHEDULE-I
Sl.No.
|
Foreign Currency
|
Rate of exchange of one unit of foreign currency equivalent to Indian rupees
| ||
(1)
|
(2)
|
(3)
| ||
(a)
|
(b)
| |||
(For Imported Goods)
|
(For Export Goods)
| |||
1.
|
Australian Dollar
|
51.30
|
49.50
| |
2.
|
Bahrain Dinar
|
184.60
|
172.25
| |
3.
|
Canadian Dollar
|
52.40
|
50.75
| |
4.
|
Danish Kroner
|
10.15
|
9.80
| |
5.
|
EURO
|
75.45
|
72.95
| |
6.
|
Hong Kong Dollar
|
8.80
|
8.55
| |
7.
|
Kuwait Dinar
|
230.00
|
215.20
| |
8.
|
New Zealand Dollar
|
47.85
|
46.20
| |
9.
|
Norwegian Kroner
|
8.10
|
7.80
| |
10.
|
Pound Sterling
|
91.15
|
86.90
| |
11.
|
Singapore Dollar
|
50.40
|
48.75
| |
12.
|
South African Rand
|
4.85
|
4.55
| |
13.
|
Saudi Arabian Riyal
|
18.55
|
17.35
| |
14.
|
Swedish Kroner
|
8.00
|
7.70
| |
15.
|
Swiss Franc
|
69.55
|
67.10
| |
16.
|
UAE Dirham
|
18.95
|
17.75
| |
17.
|
US Dollar
|
68.15
|
66.45
| |
18.
|
Chinese Yuan
|
10.25
|
9.90
| |
SCHEDULE-II
Sl.No.
|
Foreign Currency
|
Rate of exchange of 100 units of foreign currency equivalent to Indian rupees
| ||
(1)
|
(2)
|
(3)
| ||
(a)
|
(b)
| |||
(For Imported Goods)
|
(For Export Goods)
| |||
1.
|
Japanese Yen
|
63.80
|
61.75
| |
2.
|
Kenya Shilling
|
68.55
|
64.10
| |
******
First Annual Meeting of the Board of Governors of BRICS New Development Bank (NDB) held yesterday at Shanghai; India to Chair the next Meeting of Board of Governors of NDB in 2017.
The First Annual Meeting of the Board of Governors of the BRICS New Development Bank was held yesterday at Shanghai, China.
The New Development Bank (NDB) has completed one year since its establishment in 2015. Since its establishment, the policies of operations have been put in place, projects for all five member countries have been approved and the Bank has completed an issuance of Green Bonds. During the meeting of the Board of Governors of the NDB, it was decided that India will be the Chair of the Board of Governors of the Bank and the second Annual meetings of NDB will be held in India in 2017.
Mr Raj Kumar, Joint Secretary, Department of Economic Affairs, Government of India represented the Finance Minister of India and delivered the Governor’s Statement on his behalf. The Governor’s Statement read by Mr. Raj Kumar, Joint Secretary, Department of Economic Affairs, Ministry of Finance is given below:
“At the outset, we thank the Government of People’s Republic of China for their wonderful hospitality and excellent arrangements for hosting us on this historic milestone of the New Development Bank.
The first Annual Meeting of the NDB is a landmark in the advancement of the vision of the establishment of the Bank. It embodies the considerable progress and achievements of the past one year in setting up and operationalisation of the Bank. During the year, policies have been put in place and approvals have been given for financing renewable energy projects. We congratulate President Kamath and the management team for steering the Bank with speed, skill and strategy.
The first Annual Meeting also marks the commencement of the phase of immense work for realization of NDB’s vision of providing catalytic resources for sustainable infrastructure to the founder members and other emerging and developing economies.
The challenges that lie before us are significant. The current global economic context is far from being robust and is marked by a modest pickup in some advanced economies from their low levels of growth; decline in growth in emerging market and developing economies; increased financial sector volatility; and, in general, a downward revision of global growth projections by the International Monetary Fund. BREXIT has further heightened uncertainty, market volatility and risk-averse behavior.
The structural problems of Emerging Markets and Developing Economies (EMDEs) continue to affect their growth. The sluggish global trade and low commodity prices have also adversely affected commodity-exporting EMDEs, by aggravating their corporate and other economic vulnerabilities.
Governments, Central Banks and regulators have to mitigate the pressure of such vulnerabilities through judicious mix of fiscal, monetary and structural policies. We, in India, are following the approach of ‘Reform to Transform’ through far reaching Structural Reforms. We have taken several initiatives to boost investment climate and improve the ease of doing business. National Infrastructure Investment Fund has been set-up to stimulate investment in Infrastructure. Likewise, Insolvency and Bankruptcy code 2016 has been passed by the Parliament to deal with insolvency of corporate, individuals, partnerships and other entities. Initiatives such as Make in India, Start-up India, and Skill India are focused at encouraging innovations, entrepreneurship and job creation. Our government has launched a massive financial inclusion programme. More than 200 million bank accounts have been opened for the unbanked persons. We are now using Aadhaar, a unique identification system with statutory backing, as backbone for targeted delivery of financial and other subsidies, benefits and service.
In such a scenario, investments in sustainable infrastructure play a catalytic role in anchoring a more resilient recovery, improving potential growth and fostering inclusive growth in the countries. This is also the niche area of focus of the New Development Bank.
True to its nomenclature, the ‘New’ Development Bank has to focus on financing demonstrable projects with innovative approaches and instruments for speedy creation of infrastructure. We urge that this focus should be on:
o Energy generation projects, both renewable and non renewable energy projects, which utilize cost effective and clean technologies;
o Transport projects, which have a significant impact on reduction in regional and spatial inequalities and promote inclusive growth; and,
o Urban sector infrastructure projects, which enhance the livelihood potential and improve the quality of life of the people.
While commencing operations in earnest, the NDB must draw upon its core strengths and uniqueness. As a top-class financial institution, it must develop a strong pipeline of projects and respond in a fast and flexible manner to further the aspirations and interests of its members.
Thank you. ”
The New Development Bank (NDB) has completed one year since its establishment in 2015. Since its establishment, the policies of operations have been put in place, projects for all five member countries have been approved and the Bank has completed an issuance of Green Bonds. During the meeting of the Board of Governors of the NDB, it was decided that India will be the Chair of the Board of Governors of the Bank and the second Annual meetings of NDB will be held in India in 2017.
Mr Raj Kumar, Joint Secretary, Department of Economic Affairs, Government of India represented the Finance Minister of India and delivered the Governor’s Statement on his behalf. The Governor’s Statement read by Mr. Raj Kumar, Joint Secretary, Department of Economic Affairs, Ministry of Finance is given below:
“At the outset, we thank the Government of People’s Republic of China for their wonderful hospitality and excellent arrangements for hosting us on this historic milestone of the New Development Bank.
The first Annual Meeting of the NDB is a landmark in the advancement of the vision of the establishment of the Bank. It embodies the considerable progress and achievements of the past one year in setting up and operationalisation of the Bank. During the year, policies have been put in place and approvals have been given for financing renewable energy projects. We congratulate President Kamath and the management team for steering the Bank with speed, skill and strategy.
The first Annual Meeting also marks the commencement of the phase of immense work for realization of NDB’s vision of providing catalytic resources for sustainable infrastructure to the founder members and other emerging and developing economies.
The challenges that lie before us are significant. The current global economic context is far from being robust and is marked by a modest pickup in some advanced economies from their low levels of growth; decline in growth in emerging market and developing economies; increased financial sector volatility; and, in general, a downward revision of global growth projections by the International Monetary Fund. BREXIT has further heightened uncertainty, market volatility and risk-averse behavior.
The structural problems of Emerging Markets and Developing Economies (EMDEs) continue to affect their growth. The sluggish global trade and low commodity prices have also adversely affected commodity-exporting EMDEs, by aggravating their corporate and other economic vulnerabilities.
Governments, Central Banks and regulators have to mitigate the pressure of such vulnerabilities through judicious mix of fiscal, monetary and structural policies. We, in India, are following the approach of ‘Reform to Transform’ through far reaching Structural Reforms. We have taken several initiatives to boost investment climate and improve the ease of doing business. National Infrastructure Investment Fund has been set-up to stimulate investment in Infrastructure. Likewise, Insolvency and Bankruptcy code 2016 has been passed by the Parliament to deal with insolvency of corporate, individuals, partnerships and other entities. Initiatives such as Make in India, Start-up India, and Skill India are focused at encouraging innovations, entrepreneurship and job creation. Our government has launched a massive financial inclusion programme. More than 200 million bank accounts have been opened for the unbanked persons. We are now using Aadhaar, a unique identification system with statutory backing, as backbone for targeted delivery of financial and other subsidies, benefits and service.
In such a scenario, investments in sustainable infrastructure play a catalytic role in anchoring a more resilient recovery, improving potential growth and fostering inclusive growth in the countries. This is also the niche area of focus of the New Development Bank.
True to its nomenclature, the ‘New’ Development Bank has to focus on financing demonstrable projects with innovative approaches and instruments for speedy creation of infrastructure. We urge that this focus should be on:
o Energy generation projects, both renewable and non renewable energy projects, which utilize cost effective and clean technologies;
o Transport projects, which have a significant impact on reduction in regional and spatial inequalities and promote inclusive growth; and,
o Urban sector infrastructure projects, which enhance the livelihood potential and improve the quality of life of the people.
While commencing operations in earnest, the NDB must draw upon its core strengths and uniqueness. As a top-class financial institution, it must develop a strong pipeline of projects and respond in a fast and flexible manner to further the aspirations and interests of its members.
Thank you. ”
******
Income Tax Department to issue 7 lakh letters seeking Information in respect of High Value Non PAN Transactions
Under the Annual Information Returns (AIR), various types of high-value transactions were being reported to the Income Tax Department. These include reporting of cash deposits of Rs.10,00,000 or more in a saving bank account, sale/purchase of immovable property valued at Rs. 30,00,000 or more, etc. Many of these transactions do not have PAN linked to it. The Department has details of about 90 lakh such transactions for the period 2009-10 to 2016-17. The Income Tax Department has with the help of in-house computer techniques, grouped such non-PAN transactions and identified 7 lakh high-risk clusters having around 14 lakh non-PAN transactions which are being scrutinized by the Income Tax Department closely.
The Department will be issuing letters to the parties of these transactions requesting them to provide their PAN number against these transactions. For the convenience of the parties to whom these letters are addressed, a new functionality on e-filing portal has been developed wherein they can own up transactions and provide structured response electronically. The parties can log-in to their e-filing website and by quoting a Unique Transaction Sequence Number provided in the letter sent to them, can link their transaction with their PAN easily. They will also be able to give a response to this letter electronically by choosing the option of either owning up the transaction or denying the transaction as their own. The responses received from such parties online will be examined by the Department. The Department will initiate further necessary action in those cases where no replies are received.
The members of public who receive such letters are requested to kindly cooperate in the matter. They may use the Departmental helpline to ask questions, as far as possible, instead of making direct contact with any officials of the Income Tax Department. Members of public are advised not to entertain any claims from unscrupulous elements who may offer their help in complying with such communication by falsely representing themselves to be the agents of Income Tax department in the matter
The Department will be issuing letters to the parties of these transactions requesting them to provide their PAN number against these transactions. For the convenience of the parties to whom these letters are addressed, a new functionality on e-filing portal has been developed wherein they can own up transactions and provide structured response electronically. The parties can log-in to their e-filing website and by quoting a Unique Transaction Sequence Number provided in the letter sent to them, can link their transaction with their PAN easily. They will also be able to give a response to this letter electronically by choosing the option of either owning up the transaction or denying the transaction as their own. The responses received from such parties online will be examined by the Department. The Department will initiate further necessary action in those cases where no replies are received.
The members of public who receive such letters are requested to kindly cooperate in the matter. They may use the Departmental helpline to ask questions, as far as possible, instead of making direct contact with any officials of the Income Tax Department. Members of public are advised not to entertain any claims from unscrupulous elements who may offer their help in complying with such communication by falsely representing themselves to be the agents of Income Tax department in the matter
******
SIT directs Enforcement Directorate to take necessary action under FEMA with respect to 216 Companies for the period before 1st March, 2016 and against 572 Companies for the period after 1st March, 2016 for which each such Company had export proceeds pending for realisation for more than Rs. 100 crore.
As per RBI regulations, all exporters have to bring foreign exchange into the country as export proceeds within one year of the date of exports. The data on whether a particular exporter has brought export proceeds into the country is maintained by RBI.
Not bringing export proceeds is a violation of Foreign Exchange Management Act (FEMA) as it amounts to illicitly parking funds abroad.
Further, exporters can claim duty drawback on exports made with respect to taxes paid on inputs to exports. Any exporter can claim duty drawback only if the exporter has brought export proceeds into the country.
It is important for Directorate of Revenue Intelligence (DRI) also to have this data so that they could cross check the data and see if any exporter who has not brought in export proceeds has claimed duty drawback or not. The country thus loses on two counts – first by not getting proceeds of exports for exports made and secondly wrongful claim of duty drawback.
The Special Investigation Team (SIT) had asked RBI to give details of exports made where exports proceeds were yet to be utilised even after a period of more than one year. In response, RBI provided data on Export outstanding for shipping bills prior to 1st March, 2014 pending for more than one year as well as data on export outstanding for shipping bills on or after 1st March, 2014 pending for more than one year.
The data was reviewed in SIT meeting held on 12th and 13th July, 2016. From the data provided by RBI, it emerged that huge amount of export proceeds have not been realized. The SIT directed as follows :
Enforcement Directorate to take necessary action under FEMA wherever needed and specially with respect to 216 Companies with respect to the period before 1st March, 2016 and 572 Companies for the period after 1st March, 2016 for which each such Company had export proceeds pending for realisation for more than Rs. 100 crores and inform SIT on action taken.
Directorate of Revenue Intelligence (DRI) to check from it’s database on how many Companies have claimed duty drawback but have failed to bring export proceeds, take necessary action against them as per law and inform SIT of action taken.
RBI may immediately develop an institutional mechanism and IT system to not only immediately red flag those cases where exports have been outstanding in violation of FEMA guidelines but share the complete data with Enforcement Directorate and Directorate of Revenue Intelligence on a monthly basis.
Not bringing export proceeds is a violation of Foreign Exchange Management Act (FEMA) as it amounts to illicitly parking funds abroad.
Further, exporters can claim duty drawback on exports made with respect to taxes paid on inputs to exports. Any exporter can claim duty drawback only if the exporter has brought export proceeds into the country.
It is important for Directorate of Revenue Intelligence (DRI) also to have this data so that they could cross check the data and see if any exporter who has not brought in export proceeds has claimed duty drawback or not. The country thus loses on two counts – first by not getting proceeds of exports for exports made and secondly wrongful claim of duty drawback.
The Special Investigation Team (SIT) had asked RBI to give details of exports made where exports proceeds were yet to be utilised even after a period of more than one year. In response, RBI provided data on Export outstanding for shipping bills prior to 1st March, 2014 pending for more than one year as well as data on export outstanding for shipping bills on or after 1st March, 2014 pending for more than one year.
The data was reviewed in SIT meeting held on 12th and 13th July, 2016. From the data provided by RBI, it emerged that huge amount of export proceeds have not been realized. The SIT directed as follows :
Enforcement Directorate to take necessary action under FEMA wherever needed and specially with respect to 216 Companies with respect to the period before 1st March, 2016 and 572 Companies for the period after 1st March, 2016 for which each such Company had export proceeds pending for realisation for more than Rs. 100 crores and inform SIT on action taken.
Directorate of Revenue Intelligence (DRI) to check from it’s database on how many Companies have claimed duty drawback but have failed to bring export proceeds, take necessary action against them as per law and inform SIT of action taken.
RBI may immediately develop an institutional mechanism and IT system to not only immediately red flag those cases where exports have been outstanding in violation of FEMA guidelines but share the complete data with Enforcement Directorate and Directorate of Revenue Intelligence on a monthly basis.
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