Duty drawback scheme to cover more miles
The Centre is planning to extend the scope of the duty drawback scheme for exporters to cover more items and provide adequate neutralisation of customs, excise duties and service tax paid.
By TNN |
NEW DELHI: The Centre is planning to extend the scope of the duty drawback scheme for exporters to cover more items and provide adequate neutralisation of customs, excise duties and service tax paid.
To work out the modalities for calculating drawback for the additional items and All Industry Rates of Duty Drawback for ���06-07, the finance ministry has constituted a committee under the chairmanship of Saumitra Chaudhuri, member, Economic Advisory Council to the Prime Minister.
Under the duty drawback scheme administered by the revenue department, the duties, customs and central excise, paid on inputs used in the manufacture of export goods are refunded to the exporters in the form of duty drawback.
This is based on the fundamental principle that taxes and levies should not be exported, thereby rendering Indian exports competitive in the international market. The drawback rates are worked out and notified every year after taking into account the budgetary changes in the duty structure.
Other members on the committee include SB Mohapatra, retired secretary to the Government of India and TR Rustagi, former chief commissioner of customs and central excise. Joint Secretary (Drawback) will be the secretary to the committee and it will be serviced by the revenue department���s drawback division.
To work out the modalities for calculating drawback for the additional items and All Industry Rates of Duty Drawback for ���06-07, the finance ministry has constituted a committee under the chairmanship of Saumitra Chaudhuri, member, Economic Advisory Council to the Prime Minister.
Under the duty drawback scheme administered by the revenue department, the duties, customs and central excise, paid on inputs used in the manufacture of export goods are refunded to the exporters in the form of duty drawback.
This is based on the fundamental principle that taxes and levies should not be exported, thereby rendering Indian exports competitive in the international market. The drawback rates are worked out and notified every year after taking into account the budgetary changes in the duty structure.
Other members on the committee include SB Mohapatra, retired secretary to the Government of India and TR Rustagi, former chief commissioner of customs and central excise. Joint Secretary (Drawback) will be the secretary to the committee and it will be serviced by the revenue department���s drawback division.
The committee will interact with administrative ministries, export promotion councils, commodity boards, trade bodies, and other stake holders to get their views on the existing Duty Drawback Scheme and work out the modalities for calculation of duty drawback and suggest All Industry Rates of Duty Drawback for ���06-07.
The committee has been asked to factor in the incidence of service tax on exports in drawback rates as well as conduct field visits to study specific production processes, as it may consider necessary for formulation of All Industry Rates of Duty Drawback. The committee is required to submit its report to the department by April 15.
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