Govt initiates steps to give tax refunds to exporters

Govt initiates steps to give tax refunds  to exporters

The government has initiated steps to give tax refunds to exporters in a time-bound manner.

Field formations have been directed to ensure prompt and timely disbursal of drawback, rebate claims on exports and other incentives on exports, Minister of State for Finance Jayant Sinha said on Tuesday.

Sinha told Rajya Sabha in a written reply that certain representations have been received from different exporter associations in this regard. Sinha said the government has taken note of the representations.

The steps that the government has taken to give relief to exporters include handing out of duty drawback to exporters to neutralise customs, central excise duty and service tax suffered on inputs, and input services used in manufacture of export goods.

The government also allows the benefit of rebate of central excise duty paid on exported goods.

In order to boost exports in the garment sector, the government has provided various support measures. One such measure is duty free entitlement for import based on export performance, wherein manufacturers of textile and leather garments registered with their respective export promotion council are allowed to import certain specified items of certain value duty free.

The government also allows the holder of Vishesh Krishi and Gram Udyog Yojana (VKGUY), Focus Product Scheme (FPS) and Focus Market Scheme (FMS) scrip to pay service tax leviable on taxable services received by them by debiting in scrip.

Section 10AA of Chapter VI-A of the Income-tax Act, 1961, allows 100 per cent deduction on profits and gains derived from export of certain articles or things subject of fulfilment of conditions prescribed therein.

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