Seminar on Export promotion schemes and Investigations

Lakshmikumaran & Sridharan (L&S) is participating as Knowledge Partner in a seminar series being organised by Institute of Business Laws (IBL), on in Bangalore, Mumbai, Chennai and New Delhi on 17th, 18th, 19th and 20th of December 2019, respectively.

Date & Time

17 -20 Dec 2019 | 9:00 AM - 5:00 PM

The seminar in its first half will analyse the recent WTO ruling holding that some of India’s prominent export promotion schemes are not consistent with India’s Obligations under the Agreement on Subsidies and Countervailing Measures (ASCM) and to discuss the way forward.

Search, Seizure and investigations are part of any tax administration. The seminar, during the second half, will discuss the rights and responsibilities of taxpayers during such investigations.

Session 1: WTO Panel ruling on India’s Export promotion schemes – Analysis and way forward

Recently, the WTO circulated a panel ruling on the legality of five of India’s export programmes, namely MEIS, EOU/EHTP/BTP, SEZ, EPCGS and DFIS under the Agreement on Subsidies and Countervailing Measures (ASCM). The Panel has held that the challenged programmes, with certain exceptions, are inconsistent with the ASCM and that India must withdraw these programmes within a period of 90 to 180 days from adoption of the report by the WTO.

This ruling has far reaching implications as these programmes provide vital support to India’s export sector and comes at a time when the economy is under stress owing to global slowdown. The Indian Government must consider framing export support schemes that are compliant with the WTO framework to replace the said WTO non-compliant programmes. The Government of India has appealed the panel Ruling before the Appellate Body of the WTO.

Given the importance of government support and the high stakes that many businesses have in the export sector, experts from Lakshmikumaran & Sridharan shall discuss the WTO ruling during the first half of the seminar and share their insights on how to frame schemes that are compliant with the ASCM.

Session 2: Investigations under GST and Customs Law

In the second-half, experts from Lakshmikumaran & Sridharan shall sensitise stake holders about their rights and responsibilities during visits, raids, audits and investigations by the Revenue Intelligence and departmental authorities.

Various investigation agencies like

• Directorate of Revenue Intelligence (DRI)
• Directorate General of GST Intelligence (DGGI)
• Enforcement Directorate
• Directorate General of Income Tax Investigation

are regularly conducting investigation on the alleged tax/duty evasion, ITC availment, import or export restrictions as also on issues relating to violation of FEMA and PMLA. Many times, interpretation issues are also given the colour of tax evasion as also violation of provisions of FEMA, PMLA.

An investigation often consists of survey, audit, searches, seizure of documents and goods and summoning of officials including CEOs, Chairman, Directors for recoding of statements. The investigating agencies compel the companies to make ad hoc payment of the so called “disputed” tax liability. Show Cause Notices are also issued with proposal for imposition of penalty not only on the corporates but also on the individual officials responsible for alleged taxation.

As responsible corporate citizens, it is necessary for the corporates to co-operate and provide all the necessary information to the investigating agencies. At the same time, it is necessary to understand the duties, responsibilities and the rights of the company officials before, during and after an investigation.

The seminar will address the following issues amongst others:

• What is the scope of the investigation and what are the powers of the investigating agencies during and after investigation?
• What are the duties, responsibilities and the rights of the officials while co-operating with during investigation?
• How to continue the business operation when the documents, goods, stock, computer, files, etc. are seized?
• What is the protocol to be followed while giving statements to the officers in response to the summons?
• What are the powers of Departmental authorities to arrest officials during the course of investigation?

The seminar will be facilitated by distinguished attorneys from L&S including

• Mr. V. Lakshmikumaran, Managing Partner, L&S
• Mr. R Parthasarathy, Principal Partner, L&S
• Mr. T. Viswanathan, Principal Partner, L&S
• Mr. Ravi Raghavan, Executive Partner, L&S and others.

Venues & Dates