 "CBEC proposes to widen items under duty drawback scheme")
While a committee has been set up to rework the existing duty drawback rates, it has also got the mandate to extend the drawback scheme to other items. According to industry sources, there is a possibility that those products that are exported out of India after value addition and not just in raw form may be given priory tint he revamped rate scheme. Besides, big ticket items with possibility of high turnover may also feature. Manufacturing, agriculture, food processing, electronic goods and which involves skill and expertise may be preferred areas, said sources. ,
As per the other issue that the committee will be dealing with is to work out the modalities for calculation of duty drawback and suggest all India rates (AIRs) of duty drawback for the year 2015 for the existing items as also for new item. Besides, the report will also examine the quantitative data and justification for materials being treated as deemed imported and to go into the details of the levels of all the ‘residuary’ AIRs of Duty Drawback. Specifically, the committee will also examine and suggest the broad framework of AIRs of Duty Drawback in the context of Goods and Services Tax (GST)
“Considering the sluggish growth of exports, there is an urgent need for increasing export benefits to ensure the competitiveness of Indian products in international markets. Besides policy benefits, such as, continuation of interest subvention scheme, increase in rates of duty drawback to exporters, introduction of simplified procedures to ensure timely processing of indirect tax refunds are some of the areas that may boost exports”, said an industry source.
India’s latest export and import figures for May 2015 reflected the subdued economic scenario both globally and within the country. India’s exports contracted 20.2 per cent to $22.3 billion from what they were in May 2014, while its imports were down 16.5 per cent over the same period. Exports and imports have both contracted for six consecutive months, that is, from December 2014 onwards. As per reports, looking at the previous year, the December 2013 to May 2014 period also saw a continuous contraction in imports, except March 2014, which saw a marginal uptick in imports. Exports in this period, however, saw robust growth, especially in March, April and May 2014.