Deemed export benefit

[kamal chordia]

We had take one Advance Authorisation and invlidate the licence in favour of inenigeneous supplier for procurement of raw material.

Now  my questation is that which kind of benefit the supplier avail on this supply as this transction is deemed export.

thanks & regards

Kamal

 

 

[PAWAN KUMAR]

As per my view, this supply will cover under para 8.2 (a) of FTP and supplier can either claim refund of terminal excise duty paid on such supplies under para 8.3(c) of FTP or claim deemed export drawback under para 8.3 (b) of FTP.

[kamal chordia]

How supplier can get terminal excise duty refund.

because the supply under para 8.2(a) and in deemed export benefit for supply under para 8.2.a supplier   only take advance licence for intermediate supply as per para 8.4.1.i 

please also note that 8.3.c related to ted refud on procurement of capital goods.

[PAWAN KUMAR]

Dear Sir,

Para 8.4.1. has been deleted. The content of para 8.4.1 has added to table in para 8.4. Please read the table of para 8.4. Further TED refund is not specifically for procurement of capital goods. Vide para 8.3 (c), if the supplies are made under ICB, exemption from terminal excise duty is given. where the supplies are not under ICB, refund of terminal excise duty paid is given.

AI Summary

Deemed export benefit: supplier may claim terminal excise duty refund or deemed export drawback under FTP provisions.
Supply treated as a deemed export under the FTP allows the indigenous supplier to claim either a refund of terminal excise duty paid or deemed export drawback. The former para 8.4.1 has been deleted and its contents moved into the table at para 8.4. TED relief applies beyond capital goods: supplies under ICB receive TED exemption, while supplies not under ICB are eligible for TED refund.