New Delhi, July 5
DOMESTIC suppliers involved in deemed export transactions can now avail reimbursement of the full excise duty/terminal excise duty including the education cess paid on such duty.
The Government has now said that the education cess paid along with excise duty may also be reimbursed in the form of duty drawback or terminal excise duty (as the case may be) so long as all other requirements of deemed exports are fulfilled.
A circular issued by the directorate general of foreign trade (DGFT) said the reimbursement of education cess would be available only for supplies made with effect from January 18, 2005.
Hitherto, only the excise duty/terminal excise duty for deemed export supplies were reimbursed through deemed export drawback and refund of terminal excise duty.