February 9, 2024

Rajasthan budget 2024

Government Schemes / /

Finance Minister Diya Kumari of Rajasthan has presented the first Budget after the General assembly election. Highlights of Budget Sector wise contribution in Budget in decreasing order: Agricultural Subsidy> Agriculture Credit> Infrastructure> Agricultural Marketing> Social Security. Rajasthan Economy Revival Task Force Rajasthan Economy Revival Task Force has been formed for the economic development of Rajasthan. Rajasthan Agriculture Infra Mission A provision of Rs 2000 crore at the beginning of the Rajasthan Agriculture Infra Mission Mission. Under this, works like 20 thousand pounds, 10 thousand km irrigation pipeline, fencing for 50 thousand farmers will be done. New technology like drones will also be made available. 10 percent increase in Honorarium Keeping in mind the important role of honorarium workers and representatives of urban bodies and Panchayati Raj institutions in establishing good governance in the state and implementation of public welfare schemes, a 10 percent increase in the honorarium of all public representatives in the coming year was announced. Recruitment on 70 thousand posts Recruitment in various departments will be done on about 70 thousand posts for the youth in the coming years. Penalty will be waived off If the agricultural electricity connection consumers who have disconnected before March 31, 2023, deposit the principal outstanding amount in 6 bi-monthly installments and if consumers other than the agricultural category deposit the entire principal outstanding amount in one lump sum, then all their interest and penalty will be waived off. Amnesty scheme proposed It is proposed to give 100% waiver of stamp duty and penalty in cases of demand of stamp duty. An amnesty scheme is proposed to provide relief to vehicle owners. Maharana Pratap Tourist Circuit Provision of Rs 100 crore for developing Maharana Pratap Tourist Circuit. Beautification of 20 temples of the state  Govind Dev Ji Temple of Jaipur, Mangarh Dham of Banswara, Mehandipur Balaji Temple of Dausa, Ranakpur Jain Temple of Pali, Diggi Kalyan Ji of Tonk, Vineshwar Dham of Dungarpur, Ramdevra of Jaisalmer, Tejaji Temple of Nagaur, The names of Dev Narayan Ji of Bhilwara, Machkund of Dholpur, Jaldevi Temple of Rajsamand, Lauta of Poochri located on Govardhan Parikrama Marg, Shri Bademathuresh Ji of Kota, Tri Netra Ganesh Ji of Ranthambore etc. are included. Ladli Suraksha Yojana The launch of Ladli Suraksha Yojana with the aim of installing CCTV cameras in public places, girls hostels and Nari Niketans on priority basis in every district to prevent incidents of molestation of girls. 2 years relaxation for DPC In view of the important role of government employees, it is proposed to give a relaxation of 2 years for DPC to provide additional opportunities for promotion of the employees in the coming year. Half fare waived in roadways buses for the Elderly In order to provide concessional travel to senior citizens aged between 60 to 80 years in the state, the present 30 percent discount in roadways bus fares within the state limits will also be increased to 50 percent.  Chief Minister VishwaKarma Pension Scheme Announcement to implement Chief Minister VishwaKarma Pension Scheme for workers in the age group of 18 to 45 years so that workers and street vendors may also get support in old age. In this scheme, by paying a monthly premium of Rs 60 to 100, one can get a pension of Rs 2000 per month after completing 60 years of age.  The remaining premium of approximately Rs 400 per person per month will be borne by the state government.  This pension will be in addition to the Chief Minister Samman Jan Pension. There is a proposal of Rs 350 crore for this scheme. Monthly security pension amount has been increased Providing a monthly social security pension of Rs 1500 to the needy, in the first phase the amount currently payable will be increased to Rs 1000 per month. It has been announced to increase the pension to Rs 1150 from the coming year. An additional provision of Rs 1800 crore has been made for this. Pregnant women will now get Rs 6500 At present, under the Pradhan Mantri Matru Vandana Yojana, there is a provision to give Rs 5,000 in two installments to pregnant women for their first child.  In the coming year, it will be increased to Rs 6 thousand 500 in the first phase. An expenditure of Rs 90 crore is proposed on this. Saving bond of Rs 1 lakh on the birth of poor girl child Taking important steps towards women empowerment, the launch of Lado Protsahan Yojana to provide savings bonds of Rs 1 lakh on the birth of girls from poor families was announced. Mission Olympics 2028 With a view to providing all world class facilities including training kits, coaches to 50 talented youth of the state to participate in the Olympics Mission Olympics 2028 was announced.  For this, a Center for Sports Excellence will also be established in Jaipur. A provision of Rs 100 crore is proposed for this.  Besides, it is proposed to establish a Resident Girls Sports Institute for girls in Jaipur, Bharatpur and Udaipur with an amount of Rs 25 crore each. Hi-tech city near Jaipur In our state, Jaipur city is struggling with its population of 40 lakh. In this sequence, the development of Hi-Tech City near Jaipur has been announced.  Space incentives will be given to establish many institutions and companies including IT, Fintech, Financial Management, IAIMN in this Hi-Tech Township. Besides, all the facilities as per world class city will also be available here. Free education from KG to PG With a view to making education accessible to all the deprived sections of the state, free education from KG to PG to the students of low income groups, small, marginal, sharecropping farmers and agricultural labor families will be given. Interest free loan up to Rs 1 lakh Families living in rural areas are highly dependent on agriculture as well as dairy production. Our government will take all necessary steps to provide assistance to such families along with protection of cows in the state.  With this in mind,

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RBI Monetary policy 2024

Government Schemes / /

he Reserve Bank of India (RBI) Monetary Policy Committee (MPC) has kept repo rates unchanged at 6.5 percent. It has also decided to remain focused on the withdrawal of the accommodative stance, Governor Shaktikanta Das said. This is the sixth consecutive unchanged decision and comes after the Interim Budget was announced on February 1, 2024. RBI Monetary policy — Key highlights RBI MPC Meet Highlight: MPC decides to keep repo rate unchanged at 6.5 percent, says RBI Governor Das. In the previous MPC session, the RBI sustained the repo rate at 6.5 percent for the fifth consecutive time. The most recent adjustment was made in February 2023, elevating the rate from 6.25 percent. RBI MPC Economic Update: “The Indian government is adhering to the path of fiscal consolidation. Domestic agri activity is holding up well despite lower inflation and lower reservoir levels. Services sector activity is expected to remain resilient,” says Das. The financial system remains robust with a healthy balance sheet, he added. RBI MPC Growth Forecast: Real GDP growth for FY25 is projected at 7 percent, with Q1 growth at 7.2 percent, Q2 at 6.8 percent, Q3 at 7 percent and Q4 at 6.9 percent. RBI MPC Inflation Forecast: Headline inflation moderated to 5.5 percent on average during April-December 2023 from 6.7 percent during the whole of 2022-23.January-March 2024 CPI inflation forecast lowered to 5.0 percent from 5.2 percent. April-June 2024 CPI inflation forecast lowered to 5.0 percent from 5.2 percent. July-September 2024 CPI inflation forecast retained at 4.0 percent. October-December 2024 CPI inflation forecast lowered to 4.6 percent from 4.7 percent. January-March 2025 CPI inflation forecast pegged at 4.7 percent. RBI MPC Liquidity Measures: Systemic liquidity shifted to a deficit in September 2023 after four-and-a-half years. However, after accounting for government cash balances, potential liquidity in the banking system remains surplus, stated RBI Governor Shaktikanta Das.He reiterated that the Indian rupee’s exchange rate is market-driven, showcasing recent stability despite a stronger US dollar and elevated US Treasury yields, reflecting India’s economic strength. Governor Das also disclosed that India’s foreign exchange reserves stood at $622.5 billion as of February 2, 2024. RBI MPC Update on Retail and MSME Loans: To enhance transparency, the requirement of a Key Fact Statement is being extended to cover all retail and MSME loans. Banks will get some time to comply with this action. RBI MPC Update on Digital Transactions: the RBI unveiled a framework for authenticating digital payment transactions. Governor Shaktikanta Das explained during the MPC announcement that the framework aims to enhance digital security through a principle-based approach. Das noted that the RBI has not specified any specific Additional Factor of Authentication (AFA), but the payments industry has predominantly embraced SMS-based One-Time Passwords (OTPs). He added that detailed instructions for implementing the framework will be issued separately. RBI MPC Decides to Review ETP: The RBI announced its decision to review the framework for electronic trading platforms (ETP) in response to requests from market makers. The central bank had established a regulatory framework for ETPs in October 2018 to facilitate transactions in financial instruments under its regulation. However, with the increasing integration of onshore forex markets with offshore counterparts, advancements in technology, and diversification of products, the RBI noted significant developments in the landscape. Market makers have also sought access to offshore ETPs offering permitted Indian Rupee (INR) products. Consequently, the RBI has opted to reassess the regulatory framework for ETPs to address these evolving dynamics. RBI MPC on macroeconomic stability: The RBI Governor said that the multi-pronged and proactive policies have worked well to maintain and strengthen macroeconomic and financial stability. RBI Press Conference on Paytm: RBI Deputy Governor Swaminathan J stated that they refrain from discussing specifics regarding action taken on Paytm Payments Bank. The action is a result of persistent non-compliance, following extensive engagement and highlighting of deficiencies over months or even years. Such regulatory measures aim to safeguard consumer interests, reflecting the responsibility of the regulator. RBI Press Conference Live Updates: Shaktikanta Das stated that he couldn’t provide any forward guidance regarding the conditions necessary for a policy stance change to neutral. He emphasized the presence of numerous uncertainties, making it impractical to offer forward guidance in such an environment. 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Liquidation hierarchy

Business / /

An insolvent liquidation procedure includes selling assets and the distribution of the proceeds to the company’s creditors. An insolvency practitioner licensed (IP) is assigned to manage the process. It ensures on-time payment to creditors in accordance with the order we see in the Insolvency Act, 1986.   The sequence in which those who are creditors to an insolvent firm are compensated is contingent on the category of creditors. Creditors are classified according to the type of debt a company owes. This ranking determines the priority on which creditor will receive the payments first. What Exactly Is the Liquidation of an Enterprise? If the business is insolvent, liquidators simply sell the company’s assets to pay off debts. The remaining surplus goes to shareholders of the company. It has to be able to satisfy certain conditions to begin this process as an organisation. Also, the Adjudicating Authority should accept it. This is why the Adjudicating Authority (AA) liquidation order in the following instances: If the resolution program for resolution is not received by the deadline, it will be deemed as a failure to comply If the National Court of Adjudicating Authority (NCLT) simply refuses to accept the resolution plan for a variety of reasons The Committee of Creditors (CoC) allows the corporate debtor to liquidate When the resolution plan doesn’t compile with the corporation’s debtor Firstly, the adjudicating authority will approve the proceedings of the liquidation order. Later, a resolution professional for the specific corporate insolvency process will play the role of a liquidator.   Be aware that an Adjudicating Authority can replace the resolution expert appointed at any time as per the IBC (Insolvency & Bankruptcy Code). In essence, the liquidator qualifies as per the IBC code and will fill the role until the completion of the process of liquidation. Which Creditors Are First Paid When a Business Is Insolvent? The term “preferential” refers to a person who holds the status of a preferential creditor during an insolvent liquidation in order to be entitled to the first payment. This rule is present in the Insolvency Act 1986. A formal ‘hierarchy’ set in the Insolvency Act 1986 decides which class of creditors gets the first payment in an insolvent liquidation. In case a company is liquidated, the creditors of each class are required to be paid in full before the funds are allocated to the next class of creditors. The procedure for a company’s insolvency is Secured creditor The liquidation’s expenses Preferential creditor Creditors of ordinary credit Interest on preferred debts and ordinary debts Members of the company In the coming sections, we’ll look at each category in more detail and discuss which types of debts belong to the category. Secured Creditor- The most prominent of these are the secured creditors. They have a legal right over an asset. They are the first ones to receive the debt.         For instance, the bank is entitled to any property assets when a company takes a loan for an industrial warehouse. If the company goes under Liquidation, the liquidator has to make sure that the bank receives the assets. Liquidation Expenses- The liquidators devote significant time to managing each liquidation and receive compensation for their expertise and knowledge. The company’s creditors should agree with the fees before the beginning of insolvency. The costs of liquidation rank over other debts to ensure a smart and knowledgeable person managing the process. This results in maximizing the amount of money that other creditors get.   Preferential Creditors- Priority creditors are business employees who are due holiday or wage payments. Employees who are entitled to payments as a substitute for notice or redundancy payment are not considered preferred creditors. Instead, they are classified as the unsecured creditors of the company. If there aren’t enough funds from the sale of assets to cover the employee’s claims, the remaining balance will be paid by the government’s Redundancy Payments Fund up to certain levels. Creditors With Ordinary Names- The ordinary debts, or those owed to creditors of ordinary standing, comprise the majority of debts that aren’t preferred or secured debt. This typically includes individuals and companies like contractors, suppliers, HMRC and specific staff claims. Interest- As liquidations typically include struggling businesses it’s likely that they have outstanding preferential and normal loans that have followed interest charges. If there’s any cash left after the liquidator pays the secured creditor, liquidation expenses, preferential creditors, and liquidation fees, they could pay interest on the loans. Shareholders and members of the company- after settling all creditors, the liquidator can begin distributing funds to the company’s members. What company members are first depends on variables such as specific shareholdings, corporate rights, and shareholdings. Shareholders will also be the last group to receive payment. Directors often need to provide personal guarantee agreements. This is typically the case for smaller companies and newer ones for bank financing and leases on the property.    The creditor must file a claim first against the company. However, there is no reason to stop them from pursuing personal guarantees in addition. The business shareholders, also called shareholders, are last in the prioritization ranking. There are a variety of classes of shareholders. Generally speaking, they are people who have donated cash to companies, though they could be corporations too. Shareholders have made this risky decision. It means they aren’t eligible for repayment until all the above creditors receive their payments. All shareholders are most at risk of losing their capital. This is why it’s normal for investors to transform a portion of their equity into secured debt in order to ensure they’re paid in case the company fails.   If the creditor gets repaid in accordance with the agreement, the guarantor (the person who made the guarantee) could step in their place and take this money return from the company within the same category. The creditor won’t get the money twice. FAQs What is liquidation hierarchy? Liquidation hierarchy refers to the order in which the assets of a company are distributed among its creditors

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Profit & Loss Statement-(P&L) statement 

Business / /

The incomes earned and expenses incurred during a particular period, usually at the end of the year. Profit & Loss Account reflects the income and expenses of the business. It is a financial statement reflecting the outcome of business activities of an organisation during an accounting period. The Profit & Loss Account reports the incomes and expenses directly related to an organisation to measure the performance in terms of profit or loss. Profit & Loss Account is also known as P&L A/c, Profit & Loss Statement, Income Statement or Income and Expense Statement. What is Profit & Loss Statement? The Profit & Loss Statement is a crucial financial statement summarising the costs, revenues and expenses incurred by a business during a specific period, usually a quarter or year. All the indirect expenses and incomes, including the gross profit/loss, are reported in the Profit & Loss Statement to arrive at the net profit or loss. It shows the company’s net profit or loss during a specific time for which it is prepared. This statement helps companies make informed decisions about their operations and track their financial performance. Profit & Loss Statement/Account shows the profits/losses earned/incurred by a business for a month or a year. Companies use Profit & Loss Statement and others use “T Account” for these below mentioned reasons. Profit & Loss Statement/Account is prepared for two main reasons. To know the profits/losses earned/incurred by a business, Statutory requirements (Companies Act, Partnership Act or any other law) Traditionally, there were two steps to know the profit/loss. It meant, the preparation of : Trading Account Profit & Loss Account The trading account reflects the gross profit or loss of the business. Profit & Loss Account shows the net profit or loss earned by the company. Calculations in the Profit & Loss Account would be as follows: Add all revenue earned over the accounting period. Add all expenditures made throughout the accounting period. Subtract total expenses from total revenue to know the difference. If the value is positive, it represents profit; if it is negative, it represents a loss. How to prepare Profit & Loss Statement? Below is the process to prepare the Profit & Loss Statement: Prepare ledger accounts: An account statement must be prepared for each ledger from the journal book to determine the closing balance. Create trial balance: Trial balance summarises all the ledger accounts. It lists every ledger account with the closing balance posted from the individual ledger accounts statement. Preparing trading and profit & loss statement: All the ledger accounts with the nature of the sales, purchase, indirect expenses, direct expense and income are posted to the Profit & Loss Statement. Components of Profit & Loss Statements Revenue/Income – The business’s income is classified into two main categories. The revenue from the primary business operations is recorded first, which includes the revenue generated in the normal course of business. The next category refers to the other income or the miscellaneous income of the business, which includes the income generated from the company’s various investments, such as interest or dividend income.  Cost of Goods Sold- The Cost of Goods Sold (COGS) recorded in the Profit & Loss Statement includes the direct cost of operating like the labour cost, raw material cost or the direct overheads of the business related to the purchasing or manufacturing the goods. These expenses are deducted from the revenue to generate the business’s gross . Operating Expenses- Operating expenses are the indirect expenses/costs involved in the production or manufacturing process of running a business. These expenses include administrative expenses like depreciation costs, employee costs, marketing and distribution costs, selling cost, research and development costs, etc.  Operating Profit- The operating profit is the positive balance from the gross after deducting the operating expenses. It is also called EBIT (Earnings Before Interest and Taxes). A positive operating assures the stakeholders and investors of the business’s profitability and solvency.   Net Income- The net income of a business is the net profit generated by the business after deducting all the operating and non-operating expenses, interest and taxes. It is the profit that is available for distribution to the shareholders. The earnings per share are also calculated based on the net profit or the business’s net income.  Different Formats of the Profit & Loss Account Format for Sole Traders & Partnership Firms Format of P&L Account for Companies Format for Sole Traders & Partnership Firms- No specific format of Profit & Loss Account is given for the sole traders and partnership firms. They can prepare the P&L Account in any form. However, it should reflect the gross profit & net profit separately.  Usually, these entities prefer “T shaped form” for preparing P&L account.  T-shape Form T-shape form P&L account has two sides – Debit & Credit. Trading account is prepared first followed by Profit & Loss Statement.  Trading and Profit & Loss Account Particulars Amount Particulars Amount To Opening Stock xxx By Sales xxx To Purchases xxx By Closing Stock xxx To Direct Expenses xxx     To Gross Profit xxx       xxx   xxx To Operating Expenses xxx By Gross Profit xxx To Operating Profit xxx       xxx   xxx To Non-operating expenses xxx By Operating Profit xxx To Exceptional Items xxx By Other Income xxx To Finance Cost xxx     To Depreciation xxx     To Net Profit Before Tax xxx       xxx   xxx Format of P&L Account for Companies- Companies have to prepare the Profit & Loss Account as per Schedule III of Companies Act, 2013.  Following is the format mentioned in Schedule III – STATEMENT OF PROFIT & LOSS  Name of the Company………….  Statement of Profit and Loss for the period ended…………….     Note No. Figures for the current reporting period Figures for the previous reporting period INCOME       a) Revenue From operations       b) Other Income       Total Income       EXPENSES       a) Cost of materials consumed       b)

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West Bengal Birth Certificate

Government Schemes / /

As per the Registration of Birth Act, 1969 it is mandatory to register every birth under the government of West Bengal. A birth certificate is an important document for every citizen issued by the Chief Registrar of birth. Purpose of Birth Certificate It is mandatory for every resident in West Bengal to apply for the birth certificate and register birth, as it proves the nationality of a person. The birth certificate is also useful for various purpose like for admission in school, to obtain a passport, voter card, driving license etc. Registering Birth in West Bengal For births in a Government Hospital: The person can obtain the birth certificate from the Health Officer office within 21 days from the date of birth. For births in a Private Hospital: – The person can obtain a birth certificate from the respective borough up to one year. For birth in a House: The birth certificate can be obtained from the borough, but the Head of Family should report events of birth to the concerned Ward Health Unit for Registration. Required Documents While applying for the birth certificate, submit the following documents along with the application form: Proof of place of birth issued by the medical institution where the child was born. Parents address proof. Parents identity proof. Marriage certificate of the parent is optional. Fee Structure The first copy of the birth certificate registered within one year from the date of birth is free of cost. Additional copies of the birth certificate will be chargeable at Rs.100 for each copy. Procedure for Registration of a Birth certificate To obtain a birth certificate in Kolkata, visit the Kolkata Municipal Corporation(KMC) office. Submit the birth certificate application form along with the prescribed documents as mentioned above. On submission of the application, KMC office issues the birth certificate, and that can be downloaded online as well. Online Registration of Birth Certificate Step 1: The applicant must visit the official website of e-District west Bengal. Step 2: Login into the e-District portal and select the service “Registration of Birth”. Step 3: Enter the required details and upload the scanned documents. Step 4: Finally click on submit button for successful Registration. Note: After successful Registration, the supervisor will verify all the documents and forward the application to the administrative officer. The administrative officer will approve the application and generate a digitally signed Birth Certificate. On approval of the application, follow the steps below to download the birth certificate: Step 6: Click on “Approved application” from the list of approved birth certificate. Step 7: Now, the applicant can download the digitally signed birth certificate. If the applicant does not receive the birth certificate, then the applicant must visit the respective Municipal Corporation and apply in person.  FAQs Why is a birth certificate important? A birth certificate is a vital document that serves as proof of identity and age. It is required for various purposes such as obtaining a passport, enrolling in schools, applying for government services, and more. How can I obtain a birth certificate in West Bengal? Typically, you can apply for a birth certificate at the local municipal corporation or municipality office where the birth occurred. The process may involve submitting a duly filled application form along with supporting documents. What documents are required for obtaining a birth certificate? The required documents may include proof of birth, proof of residence, and identification documents of the parents. It’s advisable to check with the local authorities for the specific documents needed. 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Export of Goods And Services against lut

Business / /

LUT and bonds are instruments that evidence an undertaking by the taxpayer for exports. Here we give an insight into the details about when to opt for LUT and when to opt for Bond. Not only this but also how to claim the refund of IGST paid on exports in simple steps. Export is a significant term for multinational trade. It includes the sale of goods/ services from one country to another. In India, there are various rules, regulations, and procedures have been introduced to promote exports by the Indian Government. It makes the procedure simple for exporters. One such regulation is the exporting of goods and services against a Letter of Undertaking (hereinafter referred to as LUT)The GST LUT Form is an essential document that enables you to seamlessly conduct your export transactions without paying Integrated Goods and Services Tax (IGST) at the time of supply.  The concept of LUT under Export of Goods and Service against Letter of Undertaking LUT is a document that works as a guarantee by an exporter. That they will fulfill their obligations of paying customs duty, if applicable, on their exported goods or services. It is a binding commitment to a government that exporters will comply with all the applicable laws and regulations regarding exports. The LUT introduce by the exporter and submits to the jurisdictional Assistant Commissioner of Customs or Deputy Commissioner of Customs. It is a document that exporters can file to export their goods/services without paying taxes. As per the new GST regime, all exports are under the IGST that later can be reclaimed as a refund against the tax payment. LUT gives exporters the effort of having a refund and terminates the funds blocking through the payments of tax. In accordance with CGST Rules, 2017 any registered person can have LUT in form of GST RFD-11 and export goods/ services without tax payment. Who can apply for LUT under Export of Goods and Service against Letter of Undertaking? Any person can apply for LUT if in case: – Are registered under GST; Intention to export goods/ services; and Wish to export goods/services without any payment of an integrated tax. When to apply for a LUT? It is significant to have all necessary documents with exporters. While filing LUT, is filed by an exporter before the shipment of goods and services. The exporter must apply for LUT before the start of the financial year for which they wish to export. The exporter must renew the LUT annually before the expiry date. Prior to the implementation of the GST regime, exporters had to manually file and signed RFD-11 on business letterhead in duplicate- One has given to the Assistant Commissioner/ Jurisdictional Deputy having jurisdiction over their principal place of business where the verification of the export documents happens by ICEGATE way. Another one is with the export documents to the customs clearing authority. Documents required at the time of filing LUT Application Form: An application form for obtaining a LUT must be submitted online using the Digital Signature Certificate (DSC) of the authorized signatory of the company. PAN Card: A copy of the PAN card of the company must be submitted as proof of identity. GST Registration Certificate: A copy of the GST Registration certificate of the company must be submitted to prove that the company is registered under the Goods and Services Tax (GST) regime. Bank Details: Details of the company’s bank account, including the name of the bank, branch, and account number must be submitted. Export Order: A copy of the export order or contract must be submitted to show the details of the goods or services that will be exported. Invoice: A copy of the commercial invoice must be submitted to show the value of the goods or services that will be exported. Incorporation Documents: Incorporation documents of the company, such as the Memorandum of Association (MOA) and Article of Association (AOA), must be submitted. Authorized Signatory Letter: A letter from the authorized signatory of the company must be submitted, authorizing the person submitting the LUT application on behalf of the company. Digital Signature Certificate: The DSC of the authorized signatory of the company must be submitted as part of the online LUT application process. Business Proof: Proof of the company’s business, such as a certificate of incorporation, certificate of business registration, or trade license, must be submitted. Declaration: A declaration must be submitted by the authorized signatory of the company, stating that the information submitted in the LUT application is true and correct. Eligibility to export under LUT Export under LUT are extending to all registered persons who intend to supply goods/ services. For export without payment of integrated tax, apart from those who are prosecuted for any offense under the IGST Act/ CGST Act, 2017, or any other existing laws. The tax evaded amount in such circumstances exceeds INR 250 Lakhs. Benefits of Export of Goods and Services against Letter of Undertaking Exemption from Furnishing a Bank Guarantee: The biggest advantage of exporting against LUT is that it exempts the exporter from furnishing a bank guarantee for customs duty, if applicable. This saves the exporter a significant amount of money and effort that would otherwise be required to obtain a bank guarantee. Streamlined Exportation Process: Exporting against a LUT simplifies the export process, as the exporter does not have to provide any additional security or collateral. These speed up the export process and allow the exporter to focus on the other important aspects of their business. Increased Confidence: Exporters who have a good track record of compliance with the regulations and laws regarding exports can increase their confidence in their ability to compete in the global marketplace by obtaining a LUT. Improved Reputation: Exporters who export against a LUT are seen as trustworthy and reliable, which can improve their reputation and help them attract new business. Process for obtaining a LUT Apply for a PAN Number: To obtain a LUT, the first step is to apply for a Permanent Account Number (PAN) from the Income Tax Department. The PAN is a unique identifier that is required for

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