GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DIRECTORATE GENERAL OF FOREIGN TRADE
NEW DELHI
POLICY CIRCULAR NO. 7/2015-2020
Dated: May 23, 2018
To
1. All Exporters/Members of Trade
2. All Regional Authorities of DGFT.
3. All Customs Authorities
Subject: Clarification on the term ‘Duty’ under Sl.No. 3 of Appendix- 3A of Foreign Trade Policy 2015-2020.
This Directorate has received reference seeking clarification on whether the term “Duty” appearing in Appendix-3A, SI. No. 03 is “Basic Customs Duty” only or all Customs duties (including BCD + SAD/IGST)
2. The issue has been examined in this Directorate. It is clarified that the term “Duty” used in respect of the items listed in Appendix 3A is to be read as “Basic Customs duties” only and not “all Customs duties (including BCD=SAD/IGST)”
3. This is issued with the approval of the Competent Authority.
[Issued from File No. 01/61/180/7/AM19/PC-3]
(Lokesh H D)
Joint Director General of Foreign Trade
MrA & Mr B are two friends. Mr A started up a new company in India and engaged few employees. Mr B went to USA and formed a company at USA. Then Mr A helps B by engaging his Indian staffs who recruited in USA.By this way Mr B earns money from the USA Govt/Company. Then Mr B gives curtain portion of earning to Mr A for payment to his employees. Mr B send money to Mr A’s company account.
Whether GST or Income Tax is payable?