IceGate Registration Process Online

Sun, 16 Jul 2023 17:05:14 +0530

Step By Step Guide to Apply IceGate Registration

For starting any business of Import and Export in India, one must have two Registrations as per the Indian Government, out of which one is IEC (Import-Export Code) and another one is AD (Authorised Dealer) Code Registration.

AD Code is a 14-digit number issued for the customs clearance of the goods. This AD Code aims to ensure that the foreign currency used for transactions in an exporter’s current account comes from a legal channel. But Before we apply or link AD Code we have to complete the registration process for IceGate for which here's the detailed steps and video guidance.

Step 1 - Visit Home page of Icegate Portal

Visit the Icegate portal at https://www.icegate.gov.in/ and click on the “Login/sign Up” link.

(Home page of Icegate)

Step 2 - Click on the Old Website Option

Click on the “Old Website” given on the homepage to proceed with icegate registration.

(ICEGATE Registration Tab)

Step 3 - Click on User Login/Signup Option

After clicking on the old website, Click on the “User login/Signup” option on the Homepage of ICEGATE.

(Tab of User Login/Signup)

Step 4 - Click on the Sign Up Now option

To register on ICEGATE the applicant will have to click on the option of “Sign up now”

(Option of Sign up for ICEGATE Registration)

Step 5 - Select your ICEGATE ID / Availability of credentials

The applicant needs to provide his/her ICEGATE ID and email id. The id will be of the applicant’s choice. The ICEGATE id should be unique else the page will not accept it.

(Unique ICEGATE Id)

Step 6 - Enter IEC Number and click on Verify option

After clicking on check availability the next screen will appear to fill up the details as in the image below. Provide essential details and fill out the registration form.

(Verify the entered details for registration)

Step 7 - Select Custom Location and click on confirm button

Once all details are filled up in the form, click on Verify to check all IEC details which are mapped to IEC number as shown below:

(Select Name of Ports to register)

You have to select the location of the customs ports from the list. You may choose as many ports as you wish to add to your profile.

Step 8 - Fill up the details and attach the DSC.

Once clicked on the “confirm” tab, the page will go to the next step to fill in all the details like name, mobile number, aadhar no & documents. Mobile number and email id should be the same as DGFT registration. For this step, DSC should be connected to upload the documents.

(Enter required details)

Step 9 – Generation of OTP for authentication

The applicant will receive the OTP on the registered email id for authentication.

(Enter OTP to complete the process)

Step 10 - Enter a valid OTP to complete the registration

Applicant will receive the confirmation about the registration on his/her registered mail id stating that “your information has been received successfully & you will be intimated by email as soon as your registration approved by the competent authority”.

To get Final confirmation of approval of Icegate Registration please wait for confirmation from ICEGATE, which usually takes two to three working days.

A user ID and password for accessing your profile will be sent to your registered email address after your request has been accepted.

Step 11 - Check Status of Registration

Users can check the status of their submitted documents by logging into the ICEGATE website with their registered ID. To check the status of your registration follow the steps below:

i. Click on “ICEGATE Registration Verification”

(Icegate registration Verification)

ii. Enter “PAN No. & Image Letters” and click on submit to check the status of your ICEGATE registration.

(Enter Pan no to check the status of registration)

iii. If your registration is active then it will show the below link with details of “ICEGATE ID” & “Registered Since”

(status of icegate registration-Accepted)

iv. It will show the below image if the ICEGATE ID is not active with the definition of “No record found for this PAN number. User is not registered with ICEGATE”.

(status of icegate registration-Pending)

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Equalization Levy in Case of Import

Sat, 11 Jul 2020 13:56:32 +0530

Equalisation Levy

1. Background and Relevance of Equalisation Levy

Over the last decade, Information Technology has gone through an exponential expansion phase in India and globally. This has led to an increase in the supply and procurement of digital services. Consequently, this has given rise to various new business models, where there is a heavy reliance on digital and telecommunication networks.

As a result, the new business models have come with a set of new tax challenges in terms of nexus, characterization and valuation of data and user contribution. The combination of inadequacy of physical presence based nexus rules in the existing tax treaties and the possibility of taxing such payments as royalty or fee for technical services creates a fertile ground for tax disputes.

To bring in clarity in this regard, the government introduced vide Budget 2016, the equalisation levy to give effect to one of the recommendations of the BEPS (Base Erosion and Profit Shifting) Action Plan.

2. Applicability of Equalisation Levy

Equalisation Levy is a direct tax, which is withheld at the time of payment by the service recipient. The two conditions to be met to be liable to equalisation levy:

The payment should be made to a non-resident service provider;
The annual payment made to one service provider exceeds Rs. 1,00,000 in one financial year.

3. Services Covered Under Equalisation Levy

Currently, not all services are covered under the ambit of equalisation Levy. The following services covered:

Online advertisement;
Any provision for digital advertising space or facilities/ service for the purpose of online advertisement;

As and when any other services are notified will be included with the aforesaid services.

4. Rate of Tax Under Equalisation Levy

Currently the applicable rate of tax is 6% of the gross consideration to be paid.

Example:

Rohan has advertised on Facebook to expand his business. He has to pay Rs. 2,00,000 in FY 2017-18 to Facebook for the advertising services availed.

Solution:

Facebook will bill Rohan for an amount of Rs. 2,12,765.9

Rohan will deduct TDS at the rate of 6% of Rs. 2,12,765.9 = Rs. 12,765.9 and pay the balance of Rs. 2,00,000 ( Rs. 2,12,765.9 – Rs. 12,765.9) to Facebook.

5. Due Dates for Compliance

Due date of furnishing Equalisation Levy Statement (Form-1) is on or before 30th June of Financial Year ended. This is the annual statement.

From the above example, let us assume Rohan made the payment on 15th February.

He will have to deposit the tax with the authorities by 7th March, 2019 and file the statement (i.e. Form -1) on or before 30th June, 2019.

6. Consequences of Delayed Payments
In case there is a delay in payment:
Interest is charged at 1% of the outstanding levy for every month or part thereof is delayed.
In case there is non-compliance on behalf of the service recipient:
The compliance procedure for the Equalisation Levy is the responsibility of the service recipient.
1. Penalty for failure of payment
Equalisation Levy not deducted: Penalty equal to the amount of levy failed to be deducted (along with interest and depositing of the principal levy outstanding).
Equalisation Levy deducted but not deposited: Penalty equal to INR 1,000/day subject to the maximum of the levy failed to be deducted (along with interest and depositing of the principal levy outstanding).
Disallowance of such expenditure in the hands of the payer (unless the defect is rectified).
2. Penalty for failure of filing statement of compliance
INR 100/day for each day the non-compliance continues.
3. Prosecution
If a false statement has been filed then the person may be subjected to imprisonment of a term up to 3 years and a fine.