TaxTMI 
TaxTMI 
12 September 2009 Dear Sir, We are an exporter of engineering items. Please let us know whether income tax is applicable.. 1) On rebate claim refund 2) DEPB refund Thanks and best regards Shamima Khan Mob: 9830606299 Excelo Industries Inc Phone 03326456660 e.mail: [email protected]
Applicability of Income tax
12 Sep 2009 
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Taxability of export refunds: rebate and DEPB refunds treated as income and includible in taxable income.
Rebate claims, including excise duty refunds and DEPB refunds, are treated as income and must be included in the recipient's taxable income. Additionally, taxable services exported may be exported without payment of service tax and the Central Government may notify rebates of service tax or duty on inputs or input services used in exported services, subject to prescribed conditions and procedures. (AI Summary)
Rebate claims, including excise duty refunds and DEPB refunds, are treated as income and must be included in the recipient's taxable income. Additionally, taxable services exported may be exported without payment of service tax and the Central Government may notify rebates of service tax or duty on inputs or input services used in exported services, subject to prescribed conditions and procedures. (AI Summary)