DBK + H Form

[Kishan Barai]

Can we get full DBK % (Without availing CENVAT Credit) if we have purchased goods for exports against H Form & evaded VAT ? #Merchant #Exporter

[YAGAY andSUN]

Not for evaded VAT. As VAT is not payable on deemed export etc. If merchant exporter submit the NOC obtained from Manufacturer Exporter to the Customs Authorities, they can get duty drawback.

[Ganeshan Kalyani]

There is no vat on export sale. Form H substantiate the immediate previous purchase of goods intended to sale.

[Kishan Barai]

What if MFG unit denies to provide NOC & avail CENVAT credit as a deemed exportes ? will Merchant get full DBK ?

[YAGAY andSUN]

Then you can negotiate the prices accordingly.

AI Summary

Duty drawback eligibility hinges on supplier NOC; without it full drawback may be unavailable and price negotiation may follow. Duty drawback entitlement for a merchant exporter buying against Form H depends on submitting the supplier's NOC to customs; exports are not subject to VAT and Form H evidences the prior purchase. If the manufacturer avails CENVAT credit or refuses the NOC, the merchant cannot secure full drawback and should seek contractual price adjustments.