Duty Drawback - New All India Rates from Today - No Drawback if Service Tax refund is availed
GOVERNMENT has notified the new All India Rates of Duty Drawback effective today. Board has also issued a Circular explaining the salient features of the Drawback rates.
The drawback rates have been determined on the basis of certain broad parameters including, the prevailing prices of inputs, Standard Input Output Norms (SION), share of imports in the total consumption of inputs and the applied rates of duty. The incidence of duty on HSD/Furnace Oil has been factored in the drawback calculations. The incidence of service tax paid on taxable services which are used as input services in the manufacturing or processing of export goods has also been factored.
Board wants the Commissioners to ensure that the exporters do not avail of the refund of this tax through any other mechanism while claiming the All Industry Rates of duty drawback.
The Drawback Schedule includes some new entries such as Denim Fabric and cotton garments containing 1% or more by weight of Spandex / Lycra / Elastane, garments of blend containing wool & Man Made Fibre(MMF), woven carpets and floor coverings of jute, knotted carpets and floor coverings of MMF, brass parts of ball or roller bearings and silk embroidery. The Schedule may please be perused for details.
CBEC Circular No. 35/2010-Cus., Dated: September 17, 2010 and NOTIFICATION NO. Dated: September 17, 2010