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DGFT and Commercial tax department of Bihar Signed MoU on Foreign Exchange Data Sharing

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Capital Market
Last Updated : Jan 18 2016 | 9:13 AM IST
The Commercial tax department of Bihar has signed a Memorandum of Understanding (MoU) with Directorate General of Foreign Trade (DGFT) for sharing of foreign exchange realization data. Smt. Sujata Chaturvedi, Commissioner cum Principal Secretary, Commercial Taxes Department represented Government of Bihar while Shri D. K. Singh, Additional DGFT represented DGFT.

The foreign exchange realization data is an important economic indicator as it quantifies transaction level export earnings. This is also known as eBRC (Electronic Bank Realization Certificate) data. BRC can be used by state government departments for ensuring refund of VAT to eligible exporters.

e-BRC project enables banks to upload Foreign Exchange realisation information relating to merchandise goods exports on to the DGFT server under a secured protocol. So far 100 banks operating in India, including foreign banks and cooperative banks have uploaded more than 1.5 Crore e-BRCs on to the DGFT server. The eBRC project created an integrated platform for receipt, processing and subsequent use of all Bank Realization related information by exporters, banks, central and state government departments. Earlier, the banks issued physical copy of BRC to exporters and no data mining or analysis was possible. The process for BRC issuance and subsequent utilization were largely manual and department centric. The exporters suffered most as they had to run to banks and government departments for claiming benefits.

So far, Commercial Tax Departments of 13 states have signed MoU with DGFT for receiving e-BRC data for VAT refund purposes. These are: (i) Maharashtra, (ii) Delhi, (iii) Andhra Pradesh,(iv) Odisha, (v) Chhattisgarh, (vi) Haryana, (vii) Tamil Nadu, (viii) Karnataka, (ix) Gujarat, (x) Uttar Pradesh, (xi) Madhya Pradesh, (xii) Kerala, (xiii) Goa.

In addition, Ministry of Finance, Enforcement Directorate and Agricultural & Processed Food Products Export Development Authority (APEDA) have also signed MoU with DGFT for receiving e-BRC data.

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First Published: Jan 18 2016 | 8:22 AM IST

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