Exporters’ tax refund scheme: Government notifies rates – Times of India
[ad_1]
NEW DELHI: Nearly eight months after its implementation, the government on Tuesday announced rates under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, while promising to find a solution to clear the arrears under two defunct schemes for goods and services exporters.
This year, RoDTEP, which is meant to refund taxes paid by exporters on inputs and services, will cover over 8,500 products or tariff lines, with the funds allocated estimated at Rs 12,454 crore.
Another Rs 7,000 crore has been provided for Rebate of State and Central Taxes and Levies (RoSCTL), which was notified last week. During the next financial year, Rs19,400 crore would be available for the two schemes, commerce secretary B V R Subrahmanyam said.
“Today, we have notified the rates. RoDTEP is going to be a long-lasting scheme and it is going to be a flagship scheme of the commerce ministry. It is also compliant with the WTO,” Subrahmanyam told reporters.
The schemes would together cover 95% of the tariff lines or goods and exports, with refunds ranging between 0.5% and 4.3%. The rebate under the scheme would not be available in respect of duties and taxes already exempted or remitted or credited.
On the issue of two earlier schemes — Merchandise Exports from India Scheme and Service Exports from India Scheme — that were incompatible with global trade rules, the commerce department is in talks with the finance ministry to settle the dues.
“It is a pretty large amount…We are working very closely with finance (ministry). Give us 15 days,” the secretary said.
This year, RoDTEP, which is meant to refund taxes paid by exporters on inputs and services, will cover over 8,500 products or tariff lines, with the funds allocated estimated at Rs 12,454 crore.
Another Rs 7,000 crore has been provided for Rebate of State and Central Taxes and Levies (RoSCTL), which was notified last week. During the next financial year, Rs19,400 crore would be available for the two schemes, commerce secretary B V R Subrahmanyam said.
“Today, we have notified the rates. RoDTEP is going to be a long-lasting scheme and it is going to be a flagship scheme of the commerce ministry. It is also compliant with the WTO,” Subrahmanyam told reporters.
The schemes would together cover 95% of the tariff lines or goods and exports, with refunds ranging between 0.5% and 4.3%. The rebate under the scheme would not be available in respect of duties and taxes already exempted or remitted or credited.
On the issue of two earlier schemes — Merchandise Exports from India Scheme and Service Exports from India Scheme — that were incompatible with global trade rules, the commerce department is in talks with the finance ministry to settle the dues.
“It is a pretty large amount…We are working very closely with finance (ministry). Give us 15 days,” the secretary said.
[ad_2]
Source link
