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TMI BlogDrawback on the material on which Cenvat Credit has been takenX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear experts, as per Rule 2 and 3 of Drawback rules, drawback in relation to any goods manufactured in India and exported, means the rebate of duty or tax, as the case may be, chargeable on any imported materials or excisable materials used or taxable services used as input services in the manufacture of such goods; and the amount of drawback is reduced by taking into account the amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Cenvat Credit availed. Why a manufacturer who has availed the Cenvat of all the taxes/duties (i.e. excise duty+sales tax+CST+Service Tax (on domestic material) and CVD+SAD+Service Tax on imported materia) is given drawback of customs portion. Please do reply. Thank You sir. - Reply By Pradeep Khatri - The Reply = Dear Karan, First of all, there is no Input Tax Credit available on tax p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid under CST Act, 1956. Secondly, duty drawback is not available on VAT/CST/Sales Tax portion. You can avail Duty Drawback in three ways, namely:- All Industry Duty Drawback. Brand rate fixation. Duty Drawback under Section 74 of the Customs Act, 1962. Duty Drawback under Section 75 of the Customs Act, 1962. Basic Customs Duty, becomes the integral part of cost of goods on which ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is no CENVAT credit allowed. When imported goods are used in manufacturing of finished goods and subsequently exported, then, duty drawback either under Section 75 of the Customs Act or under All Industry Brand Rate Duty Drawback is provided on the part of customs duty which formed the part of cost of goods sold. Further, if goods suffered any service tax components while importing and no CENV ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AT credit availed as Input Services then either you may get refund from excise department or duty drawback from customs department, as the case may be. But if CENVAT credit is availed then no duty drawback would be allowed on such portion. In All Industry Duty Drawback you get a fixed/predetermined component of duty drawback even if you availed the CENVAT credit or not. As per the FTP of India, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is clarified that India has to export its goods and services but the taxes. Regards, YAGAY and SUN (Management and Indirect Tax Consultants) - Reply By Pradeep Khatri - The Reply = Dear Karan, Please read the last line of our reply as:- As per the FTP of India, it is clarified that India has to export its goods and services but not the taxes. Regards, YAGAY and SUN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Management and Indirect Tax Consultants) - Reply By KARAN KUMAR - The Reply = Thank You Very Much Sir for sharing your valuable knowledge. Sir, (1) Can a manufacturer who has never imported any inputs/capital goods and availed Cenvat credit of excise duty + service tax claim the drawback of Customs portion. (2) Is the payment in convertible foreign exchange is a prerequisite to claim d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rawback. If so, please quote relevant provisions of FTP. - Reply By Pradeep Khatri - The Reply = Dear Karan, Yes, you can claim Duty Drawback under All Industry Rate scheme plus service tax refund depending the classification under which your goods which are intended for exports duly fall. The amount is predetermined and depends on whether you had availed the CENVAT credit or not. Getting f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oreign remittance is the pre-condition of export for availing export benefits under various export promotion schemes. Bank Realization Certificate would be available online on the DGFT's website which is uploaded by you Authorized Dealers i.e. your bank through whom you send the export documents or receive import documents. Regards YAGAY and SUN (Management and Indirect Tax Consulta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts) - Drawback on the material on which Cenvat Credit has been taken - Query Started By: - KARAN KUMAR Dated:- 14-9-2014 Customs - Import - Export - Customs - SEZ - Got 4 Replies - Customs - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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