1. K.VAITHEESWARAN ADVOCATE & TAX CONSULTANT Flat No.3, First Floor, No.9, Thanikachalam Road, T. Nagar, Chennai - 600 017, India Tel.: 044 + 2433 1029 / 4048 402, Front Wing, House of Lords, 15/16, St. Marks Road, Bangalore – 560 001, India Tel : 080 22244854/ 41120804 Mobile: 98400-96876 E-mail : vaithilegal@yahoo.co.in, vaithilegal@gmail.com www.vaithilegal.com REGULATORY COMPLIANCE – EASE OF DOING BUSINESS – REFORMS

3.  Freight forwarders purchase the freight slot from the airline or liner which is sold to the exporters.  Freight forwarders issue airway bills / house bill of lading / invoice along with copy of master BL / multimodal transport documents.  Air freight and sea freight is charged on the exporter.  To illustrate, if the published air freight rate of an airline is Rs.100/-, the airline sells it to the freight forwarders at Rs.70/- and the freight forwarders can sell it at any rate within Rs.100/-.  Freight forwarders sells at a profit or at loss depending upon market conditions.

4.  Assuming the freight forwarder sells the air freight slot at Rs.85/-, the profit of Rs.15/- is offered for income tax.  Service tax authorities in most parts of the country have initiated litigation and seek to tax the entire air freight / sea freight or the freight difference.  There is no difference between an airline / liner and a freight forwarder.  In fact the freight forwarder is the shipper to the airline / liner and carrier to the shipper.

6.  In most countries, the law provides for advance filing of complete manifest information on wheels up basis.  This information is sought both from security and risk perspectives.  Currently, carriers file the manifest only at master level and the consolidator files the information at the customs level, resulting in a mismatch.  When there is a mismatch, goods are not allowed to be cleared resulting in backlog, demurrage, etc.  Advance filing of complete manifest by carrier prior to wheels up must be implemented as in other countries. Suitable amendment is required to Section 30.

7.  All electronic document issued from customs currently require a manual stamping and signature.  The bill of entry runs into volumes of pages and the print out as well as the signature process creates delays / issues in environment / interaction at the field level, etc.  In an IT era, the manual stamping and signature needs to be dispensed with.  All the data is available in the system and can be transferred from the customs to the ACES for cenvat verification by excise authorities.  If the importer requires a hard copy, he can print out in his system or retain as a document in a file. Corresponding amendment to Cenvat Credit Rules are also required.

8.  Currently, officers go to various location to examine the goods and also the documents.  After these exercise they return to the customs stations and key in the data.  Officers can be issued handheld devices for uploading data from various points to expedite the time taken for clearance.

10.  Transportation of goods by road not liable to service tax.  GST Regime ?  Goods Transport Agency  Confusion still reigns supreme with reference to the person liable to pay service tax.  GTA is required to issue a fairly complex document known as ‘consignment note’.  Even though there is no liability on the GTA, documentation is needed from the GTA. K.Vaitheeswaran - All Copyrights Reserved

11. STATEFORM FOR OUTWARD MOVEMENT Andhra PradeshForm 600 Arunachal PradeshForm DG-01 AssamForm-63 (All mode) BiharForm D-X / D-VIII ChandigarhForm VAT 18 ChattisgarhForm 59 DelhiDVAT-33 GoaVAT XX GujaratForm 403 HaryanaForm 38 / VAT D3 (Outward) K.Vaitheeswaran

12. STATEFORM FOR OUTWARD MOVEMENT Himachal PradeshVAT XXVI Jammu & KashmirVAT 60/61 JharkhandVAT 504P KarnatakaVAT 515 KeralaFORM 15 / 16 Madhya PradeshFORM 49 / 50 MaharashtraNA ManipurFORM 28 MeghalayaFORM 37 (SALE)/FORM 35 (STM) MizoramForm 32 / 33 NagalandVAT 24 K.Vaitheeswaran

13. STATEFORM FOR OUTWARD MOVEMENT OrissaForm 409 / 410 (by Road) Form 402 (by courier) PondicherryForm JJ PunjabVAT 36 RajasthanVAT 49 SikkimForm 27 or Form 25 Tamil NaduForm JJ TripuraForm XXV UttaraKhandForm XVI Uttar PradeshForm XXI (VAT) West BengalForm 51 K.Vaitheeswaran

14. STATEFORM FOR OUTWARD MOVEMENT Arunachal PradeshForm DG-01 AssamForm-64 ChattisgarhForm-69 DelhiDVAT-35A GoaForm 404 GujaratVAT D4 KarnatakaE-Sugam Madhya PradeshForm 59 ManipurForm 29 K.Vaitheeswaran

15. STATEFORM FOR OUTWARD MOVEMENT NagalandVAT 25 OrissaVAT 406 RajasthanVAT 51 West BengalDeclaration Form K.Vaitheeswaran

16.  Multiple forms  Manual / E-filing  Check-post  Seal and signature  Seizure of goods at check-post  Tax / Compounding Fee and penalty K.Vaitheeswaran - All Copyrights Reserved

17.  States would tax services for the first time through SGST.  Inter-State supply of goods and services would attract IGST  Inter-State supply of goods and the proposed 1% tax for the originating State  Intra-State supply of goods and services would attract both CGST and SGST. K.Vaitheeswaran - All Copyrights Reserved

18.  Service industry operates in multi-locations but currently has the advantage of registering and paying tax at one location since it is a levy by the Central Government.  When GST is implemented, SGST will have to be paid in each State  Each State would have a different law.  Space, registration, return, audit etc.  Increase in cost of compliance  Moving from simple mode of business to complex mode?

19.  States taxing services –Transportation by road  Which State should tax the transaction ?  Who should be liable  Tax on Transport without credit on fuel ?  Compliance for small players is a serious issue K.Vaitheeswaran - All Copyrights Reserved

20. Whatever happened, it happened well Whatever is happening, it is happening well Whatever will happen, it will also happen well What of yours did you lose? Why or for what are you crying? What did you bring with you, for you to lose it? - What did you create, for it to be wasted or destroyed? Whatever you took, it was taken from here. Whatever you gave, it was given from here. Whatever is yours today, will belong to someone else tomorrow. On another day, it will belong to yet another. THIS CHANGE IS THE LAW OF THE UNIVERSE. THE ESSENCE OF BHAGAVAD GITA – TAX PERSPECTIVE

21. K.VAITHEESWARAN ADVOCATE & TAX CONSULTANT Flat No.3, First Floor, No.9, Thanikachalam Road, T. Nagar, Chennai - 600 017, India Tel.: 044 + 2433 1029 / 4048 402, Front Wing, House of Lords, 15/16, St. Marks Road, Bangalore – 560 001, India Tel : 080 22244854/ 41120804 Mobile: 98400-96876 E-mail : vaithilegal@yahoo.co.in vaithilegal@gmail.com