TaxTMI 
TaxTMI 
any rule of drawback which states that If profit margin is more than 50%. Then duty Drawback cant be claimed? e.g. purchas cost is 100 ? and selling cost is 200 ? we claim drawback scheme. Could you please help us with rule
Duty Drawback claiming criteria
10 Jul 2025 
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Duty drawback eligibility depends on input-duty incidence and compliance, not on exporter profit margins.
Duty Drawback is not barred by high profit margins; entitlement depends on actual or deemed incidence of duties on inputs, correct classification, and procedural compliance. Customs may scrutinise declared value under valuation rules and challenge claims for misdeclaration, overvaluation, fraud, or impermissible double benefits. Exporters facing large price differentials should compile supporting documentation and consult the jurisdictional customs office; claiming higher drawback may require proportionate adjustment of accumulated input tax credits/CENVAT. (AI Summary)
Duty Drawback is not barred by high profit margins; entitlement depends on actual or deemed incidence of duties on inputs, correct classification, and procedural compliance. Customs may scrutinise declared value under valuation rules and challenge claims for misdeclaration, overvaluation, fraud, or impermissible double benefits. Exporters facing large price differentials should compile supporting documentation and consult the jurisdictional customs office; claiming higher drawback may require proportionate adjustment of accumulated input tax credits/CENVAT. (AI Summary)