What is DEPB scheme in export?

DEPB (Duty Entitlement Pass Book ) is an export incentive scheme of Indian Government provided to Exporters in India. The DEPB rates allows import of any items except the items which are otherwise restricted for imports. Items such as Gold Nibs, Gold Pen, Gold watches etc.

What is post export EPCG scheme?

What is Post Export EPCG Duty Credit Scrip? Post Export EPCG Duty Credit scrip(s) shall be available to exporters who intend to import capital goods on full payment of applicable duties, taxes and cess in cash and choose to opt for this scheme.

Who is eligible for EPCG scheme?

1 Who are eligible to avail of the EPCG Scheme? A. The manufacturers, Exporters and Merchant Exporters are eligible to avail of this Scheme. Q.

What is DFRC scheme?

Under the DFRC scheme, exporters are allowed to import inputs without paying duty after the goods are actually exported. Therefore, it is a post-import remission scheme. The exporter does not have to pay basic duty and special additional customs duty on imported inputs.

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 is 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.

What are the benefits of EPCG scheme?

Export Promotion Capital Goods (EPCG) scheme allows import of capital goods including spares for pre production, production and post production at zero duty subject to an export obligation of 6 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issue- …

How does EPCG scheme work?

Export Promotion Capital Goods (EPCG) License, as the name suggests, is intended to act as a stimulus for exports. It allows import of capital goods at 3\% Customs Duty subject to the condition that an Export Obligation of eight times the duty saved is to be fulfilled within 8 years of Authorization issue date.

What are not eligible under EPCG scheme?

Such domestic manufacturer shall be eligible for deemed export benefit under FTP. -License under this scheme shall not be issued for the import of any capital goods for Electricity Generations or Supply plants. -Import of second hand capital goods are not permitted under the EPCG scheme.

What is the meaning of deemed export?

A. ‘Deemed Exports’ as defined in the Export and Import Polilcy, 1997-2002 means those transactions in which the goods supplied do not leave the country and the supplier in India receives the payment for the goods. It means the goods supplied need not go out of India to treat them as ‘Deemed Export’.

Is DEPB license transferable?

DEPB Pass Book Services – It is transferable. – It is Post Export Scheme.

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.

What is the DEPB Scheme?

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 the tax on capital goods under the EPCG scheme?

Under the EPCG scheme capital goods may be imported at a concessional rate of customs duty of 25\% of CIF value with an export obligation of 3 times CIF value to be achieved within 4 years. The duty will be further reduced to 15\% of CIF value where the export obligation undertaken is 4 times the CIF value within a period of 5 years.

What is the maximum amount of credit allowed under DEPB Scheme?

In respect of products where rate of credit entitlement under DEPB Scheme comes to 10\% or more, amount of credit against each such export product shall not exceed 50\% of Present Market Value (PMV) of export product. During export, exporter shall declare on shipping bill that benefit under DEPB Scheme would not exceed 50\% of PMV of export product.

What are the benefits of DEPB rates?

Benefits of DEPB Rates : The benefit of DEPB schemes is available on the export products having extraneous material up to 5\% by weight. In such cases, extraneous material up to 5\% shall be ignored and the DEPB rate as notified for that export product is be allowed.