The Ministry of Finance has notified the procedure for granting duty credit for exported goods under the tax refund scheme on remission of duties and taxes on exported products (RoDTEP). Tariffs for 8,555 products, including marine, agriculture, leather, gemstones and jewelry, were announced as part of the export promotion program in August this year.
The value of the goods for the calculation of the duty credit to be authorized under the scheme will be the declared FOB (Freight On Board) export value or up to 1.5 times the market price of that item, depending on the lesser of the two, Department of Revenue under the Ministry of Finance said in a notification.
Duty credit will be issued in lieu of remission of any duty or tax or levy, payable on any material used in the manufacture or processing of goods for export, and where such tax is not exempt, remission or credited under another scheme, he added.
“The central government hereby notifies how to issue a duty credit for goods exported under the duty and tax remission scheme on exported goods … subject to specified conditions and restrictions,” the notification reads.
The government approved an expenditure of ??12,454 crore for reimbursements under the RoDTEP program during the current fiscal year. Within this framework, various central and state duties, taxes and levies imposed on inputs, among others, would be reimbursed to exporters.
He also stated that duty credit under the scheme for exports to Nepal, Bhutan and Myanmar would only be permitted upon realization of the proceeds of the sale against irrevocable letters of credit in freely convertible currency established by importers from these countries in favor of Indian exporters for the value of these goods.
The chief customs commissioner or the customs commissioner can, after investigation, issue an order voiding the duty credit or electronic certificate if an exporter violates any provision of the law, he added.
“Where an amount of duty credit has been granted, for any reason, beyond what the exporter is entitled to, the exporter must reimburse the amount so granted in excess, himself or on demand of the competent agent, as well as interest. .. “, he noted.
Tanushree Roy, Director of Indirect Taxation, Nangia Andersen LLP, told PTI that RoDTEP is a big relief for exporters as it has the potential to improve their working capital management and boost exports. while making Indian exports more competitive. .
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