Is DEPB abolished?

The pre-export DEPB scheme was abolished w.e.f. 1/4/2000. Under the post-export DEPB, which is issued after exports, the exporter is given a duty entitlement Pass Book Scheme at a pre-determined credit on the FOB value.

Which items of exports shall not be entitled for DEPB credit?

Items such as Gold Nibs, Gold Pen, Gold watches etc. though covered under the generic description of writing instruments, components of writing instruments and watches are thus not eligible for benefit under the DEPB scheme. The DEPB Rates are applied on the basis of FOB value or value cap whichever is lower.

Which scheme consists of DEPB?

Duty Entitlement Passbook Scheme (DEPB) is an export incentive scheme implemented by the Indian Government to the exporters of the country. The scheme refunds duties that are paid by the exporters in the form of credit.

What is meant by duty entitlement passbook scheme?

Duty Entitlement Passbook Scheme is an export encouragement scheme instituted by the Government of India to the Indian exporters in the year 1997.

What is duty free import Authorisation scheme?

Duty Free Import Authorization (DFIA) is a scheme under which duty free import of inputs, fuel, oil, energy sources, acatalyst which is required for the production of export goods is allowed.

What is duty free replenishment certificate?

Duty Free Replenishment Certificate is issued to a merchant-exporter or manufacturer-exporter for the import of inputs used in the manufacture of goods without payment of Basic Customs Duty and Special Additional Duty.

When was DEPB introduced?

17 April 1997
With a view to continuously increase India’s global trade and to use trade expansion as an instrument of economic growth, several fiscal incentive schemes have been launched by the Government of India. Duty Entitlement Pass Book (DEPB), as an incentive scheme was notified vide circular no. 10/1997 dated 17 April 1997.

What is the duty drawback scheme?

The Duty Drawback Scheme provides exporters with a refund of customs duty paid on unused imported goods, or goods that will be treated, processed or incorporated into other goods for export.

What is profit on transfer of duty entitlement passbook?

Section 28(iiid) provides that any profit on transfer of the Duty Entitlement Pass Book Scheme, being the Duty Remission Scheme under the export and import policy formulated and announced under section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) shall be chargeable to income-tax under the …

How do I get a DGFT Licence?

The online application process can be made on the DGFT website. On the homepage, the applicant will have to go to the ‘Services’ section, where under the ‘Online ECOM Application’ section, they will have to select ‘Restricted Item Import License/Restricted Export Item’.

How can I get Dfia Licence?

Step- 1: The applicant has to check exported item is applicable for DFIA in SION or not. Step- 2: If the export item is eligible under SION norms, the applicant has to file an online application at the DGFT portal and get the File number. Step- 3: Export should be done within 12 months from the date of issuing file no.

What is replenishment license?

Replenishment Licence The exporters of gem and jewellery products are eligible for the grant of Replenishment Licences to import and replenish the inputs. Exports through the third party are appropriate for Gem & Jewellery Replenishment License.

Is export license transferable?

The advance licences proposed as replacement for the DFRC would also be provided only after exports are completed. Since there is no question of export obligations being fulfilled, officials feel, making the licences transferable will not lead to misuse. This is an exports-first model.

Is GST payable on duty drawback?

GST on Exports: How Will It Be Levied? The export of goods or services is considered as a zero-rated supply. GST will not be levied on export of any kind of goods or services. A duty drawback was provided under the previous laws for the tax paid on inputs for the export of exempted goods.

What is advance license in import?

ADVANCE LICENCE. ADVANCE LICENCE SCHEME. An Advance Authorisation Scheme allows duty free import of inputs, which are physically incorporated in export product (making normal allowance for wastage). In addition, fuel, oil, energy, catalysts which are consumed / utilised to obtain export product are also allowed.

What is DGFT licence?

Director General Foreign Trade (DGFT) License The import license is issued by Director General Foreign Trade (DGFT). This license is valid for 24 months for capital goods and 18 months for raw material component, consumable and spaces with the license term renewable.

What is DGFT certificate?

DGFT is introducing support to generic digital signature in the new application which will enable individual and organization-based class-2 and class-3 digital signature certificate (DSC). Support to class-2 and class-3 DGFT IEC based certificates will also continue in the new application for a limited time.

Can we sell Dfia?

On perusal of the various letters issued by the importers, exporters and traders as well as letter from the association of the traders of such licenses, it is clearly understood that the trade invariably treats DCS and DFIA as same due to their common inherent nature, that is both the DCS issued under SEIS and MEIS.

What is difference between Dfia and advance authorisation?

DFIA is a variant to Advance Authorization scheme. It is different from Advance Authorization as a higher minimum value addition of 20% is required, as compared to only 15% in Advance Authorization. It is popular with exporters who export first and then obtain the Authorization, which can be sold freely.

What is duty drawback and sale of DEPB licence?

The receipts by way of Duty Drawback and sale of DEPB licence may constitute profits or gains of the business, but cannot be construed as profits or gains ‘derived from’ the eligible IU for tax holiday. The immediate and proximate source of these receipts is not the eligible IU, but the schemes framed by the GOI.

Can I claim tax holiday on the sale of DEPB licence?

For the tax year 2000-01, the Taxpayer claimed tax holiday in respect of the Duty Drawback and sale of DEPB licence, claiming it to be directly connected with the eligible IU.

What is the DEPB rate?

The DEPB Rates are applied on the basis of FOB value or value cap whichever is lower. For example, if the FOB value is Rs.700/- per piece, and the value cap is Rs.500/- per piece, the DEPB rate shall be applied on Rs.500/-.

What is the DEPB Scheme?

Duty Entitlement Pass Book Scheme (DEPB) is an export incentive scheme. The objective of DEPB is to neutralise the incidence of Customs duty on the import content of the export product. The neutralisation shall be provided by way of grant of duty credit against the export product.