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K.R. Srivats

Available only for those with good track record

New Delhi , April 21

In a major booster dose for the exporting community, the Finance Ministry has come up with a new procedure to ensure quick refund of accumulated excise duty and service tax credit to exporters.

This facility would, however, be available to only select categories of exporters with good track record. Based on the recommendations of the Prime Minister's Economic Advisory Council, the revenue department has allowed payment of ad hoc interim refunds through a new procedure.

The refunds pertain basically to unutilised input or input services credit that are available to exporters. Input or input services credit arise when excise duty or service tax paid on the inputs is in excess of any other levies payable by the exporter on finished product or services.

New system

Under the new procedure, once preliminary scrutiny is completed, 80 per cent of the refund amount due would be sanctioned within 15 days of making the claim. The balance amount would be paid after verification and other formalities in the prescribed manner within 45 days from the date of filing of the claim. The Finance Ministry's move is expected to assuage the concerns of the exporting community, who have been demanding that taxes and levies should not be exported and a mechanism be devised, whereby, taxes collected are refunded without delay.

Export oriented units, public sector undertakings, exporters with a turnover of Rs 5 crore in the current or preceding financial year, star export houses and manufacturer exporters registered with the excise department, who have been exporting during the previous two financial years and have minimum export of Rs 1 crore or more during the preceding financial year, are some of the categories that could avail themselves of the new procedure.

More Stories on : Excise and Customs | Exports & Imports | Policy

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