NITYA Tax Associates is proud to present their recent write-up in the ‘Article’ series on trending indirect tax issues. A gist of the next article in the series is as under:

Article 48 – “CAROTAR 2020 – The New Normal for Preferential Tariff Claims” 

Preferential Trade Agreements are executed to grant preferential access in cross-border trade. India, being no exception, executed several bilateral/multilateral trade agreements wherein trade in goods attracted preferential tariff treatment. In all cases, the preferential tariff is subject to the fulfillment of ‘originating criteria’ laid out under the Rules of Origin. Despite detailed verification processes laid out under the Rules of Origin, India seldom adopted any measure to check preferential tariff treatment, putting domestic industry to a risk.

With this background in mind, the Finance Act, 2020 saw introduction of regulations to administer the Rules of Origin under the Trade Agreements. Introduced with a noble objective, these regulations are surrounded with vagueness and are complex to implement.

Through this article, our Director, Mr. Kulraj Ashpnani and Senior Associate, Ms. Deepti Dhanank have tried to dissect these regulations and highlight what is in the store for taxpayers claiming preferential tariff on imports.

Please click below to read our article titled “CAROTAR 2020 – The New Normal for Preferential Tariff Claims“ on the issue.

NITYA I Article 48 I CAROTAR 2020 – The New Normal for Preferential Tariff Claims