Lok Sabha Question No. 1912 (UNSTARRED), answered on 2015-07-31
Subject: Tax Refunds
Ministry: FINANCE
Asked by: SUKENDER REDDY GUTHA

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

**LOK    SABHA**

**unSTARRED QUESTION  NO. 1912**

TO BE ANSWERED ON FRIDAY, THE  31 ST JULY ,2015

9 TH Shravana, 1937 (SAKA)

**TAX REFUNDS**

1912. SHRI GUTHA SUKENDER REDDY:

Will the Minister of FINANCE be pleased to state:

(a) the details of incentives and other relief's being offered to exporters and importers as on date;

(b) whether the Government has received representation from Association of Indian Exporters and Importers for delay in tax refunds to exporters;

(c) if so, the details thereof; and

(d) the steps taken by the Government to disburse the tax refunded to the exporter in timely manner?

**ANSWER**

**MINISTER OF STATE IN THE MINISTRY OF FINANCE**

**(JAYANT SINHA)**

(a):    Details of incentives and other relief, inter-alia, being offered to exporters and importers are as under:

(i)       Duty Drawback to exporters to neutralize Customs, Central Excise duty & Service tax suffered on inputs/inputs services used in manufacture of export goods.

(ii)      Benefit of rebate of Central Excise duty paid on exported goods is allowed under rule 18 of the Central Excise Rules, 2002. Goods are also allowed clearance for export under bond for the same purpose under rule 19 of the Central Excise Rules, 2002. Further, refund of Cenvat Credit of duty suffered on inputs used in the manufacture of exported goods is allowed under rule 5 of the Cenvat Credit Rules, 2004.

(iii)     In order to boost exports in garment sector, Government has provided various support measures.  One such measure is duty free entitlement for import based on export performance, wherein manufacturers of textile and leather garments registered with their respective Export Promotion Council are allowed to import certain specified items duty free of value upto 5 per cent of the FOB value of the textile garments or 3 per cent of the FOB value of the leather garments, exported during the preceding Financial Year for use in the manufacture of garments for export by such manufacturer.  Similarly, the incentives are also provided to the exporters of handicrafts, leather products including footwear; handlooms, cotton and man-made textile made-ups etc.

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(iv)     Duty exemption schemes (Advance Authorization/Duty Free Import Authorizations and Export Promotion Capital Goods (EPCG) as well as the incentive schemes (Merchandise Export from India Scheme and Service/Export from India Schemes) extended to exporters administered by Director General of Foreign Trade (DGFT), Department of Commerce.

(v)  Section 10AA of Chapter VI-A of the Income-tax Act, 1961 allows  100% deduction on profits and gains derived from export of certain articles or things subject to fulfillment of conditions prescribed therein.  Further, exporters and importers are also eligible for claiming deductions in respect of profits and gains derived from such business as per provisions contained in Part D of Chapter IV (Profits and gains of business or profession) and Chapter VIA (Deductions to be made in computing total income).

(b)&(c): Certain representations have been received  in this regard from different exporters associations.

(d) : Timely issue of refunds has always been a matter of priority and concern for the Government. Field formations have been directed to ensure prompt and timely disbursement of rebate claims.

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