Skip to main content

Practical issues in RoDTEP Scheme

I hope, by now, everybody is aware of what is the RoDTEP Scheme. Assuming that let me highlight some practical questions regarding this scheme.
On 28th October 2020 under the chair of Mr. G. K. Pillai, the RoDTEP Committee was formed. The main objective of this committee is to determine the ceiling rates of items covered under the scheme. However, the data of chapter 86, 88, and 89 are still pending from the industry's side. It is predicted that the Remission of Duties and Taxes on Exported Products briefly known as the RoDTEP Scheme is likely to be launched under the new Foreign Trade Policy.
The scheme seeks to refund currently un-refunded duties/taxes/levies at the local, state, and central level have borne on the exported products.
In view of the above, I have jotted down some key questions which need to be answered,
1. How to segregate the VAT and Excise Duty leviable on petrol & diesel on export and domestic selling products?
2. How to segregate the electricity duty between exported products and domestic products?
3. How to calculate fuel costs in case of inter-state transport?
4. Filing information in Form R-1 is required for the EOU unit?
5. What are the RoDTEP provisions in the case of SEZs?
6. Municipal and Property Tax paid on the export facility premises can vary from exporter to exporter. How to standardize this?
7. How to calculate indirect taxes borne by unregistered persons in case they refuse to share their costing?
My intention in raising these questions is to highlight the practical issues in the RoDTEP Scheme and determine what other hidden costs are borne by the manufacturer exporters.
That's it from my side this week. I look forward to receiving your views on this.

Comments

  1. This scheme is applicable to manufacturer as well as exporter trader. Here you can read more about the scheme: https://www.twconsulting.in/home/services/rodtep

    ReplyDelete

Post a Comment

Popular posts from this blog

Understanding EORI: Essential Insights for Businesses Engaged in International Trade

In the ever-evolving landscape of global trade, businesses must navigate a complex web of regulations and procedures. One critical aspect of this framework is the Economic Operators Registration and Identification (EORI) system. This article aims to demystify EORI, explaining its purpose, benefits, and the process of obtaining and using it effectively. What is EORI? The Economic Operators Registration and Identification (EORI) system is a mechanism implemented by the European Union (EU) to streamline and standardize the identification of economic operators involved in international trade. An economic operator is any business entity or individual that engages in activities related to the import or export of goods. The EORI number is a unique identifier assigned to these operators , facilitating smoother interactions with customs authorities across EU member states. Purpose of EORI The primary purpose of the EORI system is to simplify customs procedures by ensuring that each ...

Digital Transformation in Cross-Border Commerce: Navigating the Global Landscape

In today’s interconnected world, cross-border commerce has become a critical driver of economic growth. As businesses expand their reach beyond national borders, digital transformation plays a pivotal role in shaping their success. In this 1000-word article, we’ll explore the impact of digital transformation on cross-border e-commerce and discuss strategies for thriving in this dynamic landscape. 1. Understanding Cross-Border E-Commerce Cross-border e-commerce refers to the exchange of goods and services between entities located in different countries using digital platforms. It encompasses logistics, marketing, payment processing, and other activities related to import and export trade. As the global economy evolves, cross-border e-commerce has transitioned from its initial stages to a more mature phase. 2. The Role of Digital Platforms Digital platforms serve as the backbone of cross-border e-commerce. These platforms facilitate transactions, connect buyers and sellers, and streamlin...

Prime Minister Modi's Upcoming Visit to Russia: A Trade Perspective

Introduction On July 8, 2024, Indian Prime Minister Narendra Modi is set to embark on a three-day visit to Russia. This visit holds significance as it marks his first bilateral engagement since taking office for a rare third consecutive term as India's prime minister. Traditionally, Modi has chosen neighboring countries for his initial foreign visits, emphasizing India's neighborhood as a foreign policy priority. However, this time, the choice of Russia and Austria may seem unconventional. Let's delve into the reasons behind this decision and explore the trade implications of Modi's visit to Russia. Background: India-Russia Relations India and Russia share a longstanding relationship that dates back to the Indo-Soviet Treaty of Peace, Friendship, and Cooperation signed in 1971. Despite the collapse of the Soviet Union in 1991, their ties have endured, with annual India-Russia summits playing a crucial role in anchoring this partnership. Defense and energy cooperation ha...