REBATE AND BRC.

[VINOD KUMAR]

DEAR EXPERTS, GOOD MORNING. Sir, whether BRC or realisation of export proceeds is mandatory before sanction of rebate claim. If so, please provide relevant circular/notification no. Thanks and regards sir.

AI Summary

Realization of Export Proceeds Required for Rebate Claim Under Notification No. 41/2012-ST; Non-Compliance Leads to Recovery. A forum participant inquires about the necessity of a Bank Realization Certificate (BRC) or the realization of export proceeds before the sanction of a rebate claim under service tax. Several replies clarify the issue, citing relevant circulars and notifications. One expert refers to Circular No. 5/2009-Customs, while another points to Circular No. 354/70/1997 CX. It is highlighted that under Notification No. 41/2012-ST, the realization of export proceeds is mandatory. If proceeds are not received within the Reserve Bank of India's allowed period, the rebate is deemed invalid and subject to recovery.