No.FIEO/DG & CEO/2020-21 August 11, 2020
1. You may be aware that the Government has already announced the continuation of MEIS till 31st of December, 2020 and its replacement by the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme. The Government is keen to fix the RoDTEP rates for different products so that transition from MEIS to RoDTEP is smooth and seamless.
The RoDTEP Scheme seeks to refund currently un-refunded (i) duties/taxes/levies at the Central, State and Local level, borne on the exported product, including prior stage cumulative indirect taxes on goods and services used in the production of the exported product and (ii) such indirect duties/taxes/levies on distribution of exported product.
The detailed data will be required by the RoDTEP Committee, as per format attached, for calculation of RoDTEP benefits for the identified sectors. While providing the data, care should be taken regarding the following aspects:-
a. Data provided should be complete for the exports made during the period 01.10.2019 to 31.03.2020. For a particular manufactured export item, the details of all inputs(s) that are used in the manufacture of all type/styles of that particular export item should be indicated.
b. The incidence of duty should be restricted to currently un-refunded (i) duties/taxes/levies at the Central, State and local level, borne on the exported product, including prior stage cumulative indirect taxes on goods and services used in the production of the exported product and (ii) such indirect duties/taxes/levies on distribution of exported product. An illustrative list of various duties/taxes/levies that might remain un-refunded is attached as Annexure.
c. It may be ensured that only taxes/levies/duties borne on the exported product which are at present not getting refunded/reimbursed under any other mechanism such as Duty Drawback, GST refunds, Central/State Govt. exemptions, subsidy, etc. are taken into account while calculating the tax incidence on the export product.
d. Data provided should only be of manufacturers/manufacturer exporters in the domestic tariff area and it should be certified by the manufacturer and its Chartered Accountant/Cost Accountant.
e. The data should be supported by copies of relevant documents such as tax invoices of inputs used, shipping bills of export products, State Govt. notifications regarding taxes/levies like electricity duty, mandi tax etc.
You may send the data within 10 days of the date of issue of this letter so that it may be submitted in time. The necessary format R1, R2 and R3 are already in the attachment along with the Annexure as mentioned above.
2. We are aware of the challenges faced by the members with regard to non-issuance of MEIS from 1st of April,2020 and are working vigorously so that the issue may be resolved to ease the liquidity at the end of the exporters.
Dr Ajay Sahai
Director General & CEO