Soon, 15-day duty refunds for export units

The revenue department is set to unveil a new refund scheme for export-oriented units (EOUs) and star export houses, under which up to 80 per cent of the duty refund would be made available within 15 days from the date of filing a request.

At present, refund of duties like excise, cost of electricity, telephone expenses are to be refunded within three months from the date of filing.

The move is aimed as a facilitation measure for exporters and is expected to be notified this week.

Government officials said for exporters with a turnover of more than Rs 5 crore, the department was making efforts to transfer the duty directly to bank accounts.

"The department thinks that since most of the EOUs and star export houses are into 100 per cent exports and are bonafide, up to 80 per cent of the duty to be refunded should be cleared by the assessing officer within 15 days and the balance 20 per cent can be released after verifying the papers," an official said.

But, the department will insert a penalty clause under which the benefit of an early refund to an EOU or a star export house will stand permanently withdrawn if the unit during any scrutiny is found to be have committed any kind of fraud or filed wrong information.

Federation of Indian Export Organisation Director General Ajay Sahai said the move would help exporters, but added that the refund should be automatically available at the time of clearance of goods at the factory.

He pointed out that early refund would particularly be useful in instances of excess credit lying with the revenue department.

"When a unit exports 100 per cent of its products but suffers taxes on inputs, then it is unable to set off the excess credit. Since there is no tax on exports, the duties suffered on inputs lie with the department as excess credit," he said.