We have received communication from DBK Division, CBIC, DOR dated 10th August 2020 requesting data for determination of ceiling rates under the scheme for Remission of Duties and Taxes on Exported Products (RoDTEP).
You might recall that in Sept 2019, Government had announced Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for neutralisation of various un refunded levies and Taxes on Export products. This scheme was supposed to replace MEIS from Jan 2020. Subsequently, DOC had sought data from councils in the specified format and was submitted by the council as per responses received. However, the launch of RODTEP was postponed till Dec 2020 to allow time to work out the rates.
Further, we understand from DBK DOR letter dated 05.08.2020 regarding constitution of RoDTEP Committee by the Government.
In continuation of the same, we have now received letter dated 10th August 2020 from DBK, CBIC, DOR informing us that the RoDTEP Committee has since started the exercise for determination of ceiling rates under the RoDTEP scheme. It is reiterated that the sequence of introduction of the scheme across sectors and prioritization of the sectors to be covered will be decided by Department of Commerce in consultation with Department of Revenue.
In this connection, Export Promotion Councils/ Commodity Boards/ Trade and Industry Associations/Chambers of Commerce have been requested to provide data w.r.t. inputs used in the respective export products in the specified Proforma comprising three parts viz. Proforma — R I, R2, and R3.
While providing the above data, care should be taken regarding the following aspects —
(a) Data provided should be complete for the exports made during the period 01.10.2019 to 31.03.2020. For a particular manufactured export item, the details of all input(s) that are used in the manufacture of all types/styles of that particular export item should be indicated.
(b) The incidence of duty should be restricted to currently un-refunded (i) duties/taxes/levies at the Central, State and local level, borne on the exported product, including prior stage cumulative indirect taxes on goods and services used in the production of the exported product and (ii) such indirect duties/taxes/levies on distribution of exported product. An illustrative list of various duties/ taxes/ levies that might remains unrefunded is attached as Annexure.
(c) It may be ensured that only taxes/levies/duties borne on the exported product which are at present not getting refunded/reimbursed under any other mechanism such as Duty Drawback, GST refunds, Central/State Govt. exemptions, subsidy, etc. are taken into account while calculating the tax incidence on the export product.
(d) Data submitted should pertain to at least five units for each export product so as to be representative of the industry. The units should be carefully selected from amongst the small, medium as well as large manufacturer exporters.
(e) Data provided should only be of manufacturers/ manufacturer exporters in the domestic tariff area and it should be certified by the manufacturer and its Chartered Accountant/ Cost Accountant.
(f) The data should be supported by copies of relevant documents such as tax invoices of inputs used, shipping bills of export product, State Govt. notifications regarding taxes/levies like electricity duty, mandi tax etc.
(g). Data provided should be from manufacturer/ Units which are willing to get their data subjected to verification by authorities to check correct ness, if required.
The communication from DBK Division, CBIC dated 10th August 2020 along with formats ( R1, R2 & R3) is enclosed for your reference.
Considering the importance of this exercise to determine RoDTEP rates, members are requested to provide the requested data in specified formats, duly certified to the council within 10 days.
Your timely replies/ information be sent to us on email id's: email@example.com, firstname.lastname@example.org, email@example.com & firstname.lastname@example.org for examination and onward submission to DBK Division.
S G Bharadi