The Indian government has today notified Remission of Duties and Taxes on Exported Products (RoDTEP) scheme guidelines and rates. Cotton yarn and fabrics are among the 8,555 tariff lines covered under RoDTEP. The scheme for zero rating of exports will provide a level playing field to domestic industry and boost India’s competitiveness in the global markets.
The RoDTEP is “based on the globally accepted principle that taxes and duties should not be exported, and taxes and levies borne on the exported products should be either exempted or remitted to exporters,” a Ministry of Commerce and Industry release said.
The scheme’s objective is to refund, currently un-refunded: (i) duties/ taxes/ levies, at the Central, State & local level, borne on the exported product, including prior stage cumulative indirect taxes on goods & services used in production of the exported product, and (ii) such indirect duties/ taxes/ levies in respect of distribution of exported products.
However, rebate under the Scheme shall not be available in respect of duties and taxes already exempted or remitted or credited.