How does DEPB scheme work?

How does DEPB scheme work?

Duty Entitlement Passbook Scheme (DEPB) is an export incentive scheme implemented by the Indian Government to the exporters of the country. The scheme refunds duties that are paid by the exporters in the form of credit. 1997, had both pre-export and post-export DEPB of which, the latter was abolished on 01.04.

How do I apply for DEPB?

As per para 7.38 of the current hand book of procedure vol-I, an application for grant of credit under DEPB may be made to the licensing authority concerned in the form given in Appendix-11C along with the documents prescribed there in. The provision of paragraph 7.2 shall be applicable for DEPB also.

What items of export shall not be entitled for DEPB credit?

Items such as Gold Nibs, Gold Pen, Gold watches etc. though covered under the generic description of writing instruments, components of writing instruments and watches are thus not eligible for benefit under the DEPB scheme. The DEPB Rates are applied on the basis of FOB value or value cap whichever is lower.

Which scheme consists of DEPB?

Duty Entitlement Pass Book Scheme in short DEPB is an export incentive scheme. Notified on 1/4/1997, the DEPB Scheme consisted of (a) Post-export DEPB and (b) Pre-export DEPB. The pre-export DEPB scheme was abolished w.e.f. 1/4/2000.

What is DEPB license sale?

DEPB is an entitlement given to the exporters for importing duty free goods, in proportion to their export earnings. This license is saleable. While calculating the export income exempt from tax under the section 80 HHC of the Income-tax Act, the exporters also include the revenue arising from sale of the DEPB license.

What are the benefits of deemed exports?

Benefits of Deemed Exports Scheme Deemed exports are exempted from the terminal excise duty or the duty is fully refundable. The manufacturers are eligible for a Special Import License at the rate of 6 percent of the Freight On Board (FOB) value.

Who can apply for EPCG license?

EPCG scheme covers manufacturer exporters with or without supporting manufacturer(s), merchant exporters tied to supporting manufacturer(s) and service providers. To apply for an EPCG scheme, an IEC is required.

What is the FOB value?

FOB Value = Ex-Factory Price + Other Costs (b) Other Costs in the calculation of the FOB value shall refer to the costs incurred in placing the goods in the ship for export, including but not limited to, domestic transport costs, storage and warehousing, port handling, brokerage fees, service charges, et cetera.

Is GST applicable on sale of Meis license?

Reply- MEIS license is covered under (Duty credit scrips) HSN4907 and exempted from 13.10. Since it is exempt, there will be no GST on purchase of license and no need to reverse ITC.

Is GST charged on deemed export?

Taxability of deemed exports under GST All deemed export supplies will be subject to GST at the point of supply. Supplies cannot be made under Bond or LUT without payment of tax. Tax should be paid on such supply and then be claimed as refund.

What is the GST rate for deemed export?

The tax invoice for the procured goods should clearly state the GST rate at 0.1%. Such goods should be exported within 90 days of the issue of a tax invoice. The GSTIN and the tax invoice number of the supplier should be mentioned on the shipping bill.

What are the documents required for EPCG Licence?

Documents required for EPCG License

• Import Export Code (IEC)
• Registration cum Membership Certificate (RCMC)
• Digital signature.
• Registration certificate from Tourism Department.
• Pan Card.
• Excise Registration (if registered)
• GST Registration Certificate.
• Proforma Invoice.