• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

K.R. Srivats

New Delhi , March 9

EXPORTERS opting for brand rates and special brand rates of duty drawback have some good news coming their way. The Finance Ministry has now said that the 2 per cent education cess imposed in 2004 budget should be factored into the computation of brand rates and special brand rates of duty drawback.

A clarification to this effect has now been made by the revenue department in response to a doubt raised as to whether the 2 per cent education cess need to be factored in the computation of rates. The Finance Ministry had in January this year said that the 2 per cent education cess had been factored in the All Industry Rates of duty drawback announced in that month. Now, this arrangement is to be extended to brand rates and special brand rates. The All Industry Rates of duty drawback account for the lion's share of duty drawback payments to exporters.

Duty drawback payments are made to exporters to neutralise the Customs and Excise duties paid on inputs used in the manufacture of exportable products.

While the Government announces the all industry rates of drawback, the brand rates are generally fixed on a case-to-case basis in respect of those products for which all industry rates are not fixed.

Exporters can opt for special brand rates in those cases where the declared all industry rates are less than 80 per cent of the actual duty incidence.

For the year 2005-06, the Government expects to collect a revenue of Rs 1,046 crore from the 2 per cent education cess on imports. The 2 per cent education cess on excise duty is expected to result in revenues of Rs 2,198 crore to the Government during 2005-06.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Mid-term review of dumping duty on Borax Decahydrate

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line