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It is common knowledge that supply of goods including plant and machinery equipment etc does not attract any income-tax/withholding tax. The innocuous inclusion of these goods under Para 7 the importers are required to provide a certificate from an accountant within the meaning of the Act that the remittance does not attract any tax irrespective of whether any data agreement is in existence between the supplying country and India.

However, having regard to the provision banks are obliged to procure and retain and even send such a certificate to the income-tax authorities though no tax is attracted for this transaction.

This invariably results in administrative hassles in the day-to-day transactions and also the transaction cost goes up as the certification has to be done by an accountant other than an employee accountant.

I hope you will look into the matter and delete this provision in the interest of the importing community as the same does not in any case generate revenue and hence result in revenue leakage. This will enable certification only for the tax attracting transactions in the right spirit for which it is meant.

C.E. Mahadevan, GM (Finance and Banking), Adani Enterprises Ltd, Ahmedabad

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