INTEREST CALCULATION ON DEPB REVERSAL

[SANJEEV JADHAV]

Dear Sir, we have re-imported goods due to rejection from our customer originally exported under DEPB scheme. My query is regarding calculation of interest on DEPB reversal. Please clarify whehter we have to pay interest from date of shipping bill or from the date of issue of DEPB license. If their is any circulare or notification in this regard please be quoted. Also inform rate of interest on DEPB reversal.

[Guest]


the point is if the lic has been alredy utilised, then you have to pay duty along with @18% interest from the date of Bill of Entry.  In case of you have not utilised that lic you may surronder to DGFT in order to close the file.

 

in cenvat portion also you have to reverse along with @18% interest when the lic has been utilised by you

 

[Rajendra Kumar Mehrotra]

How the DEPB has been used? Weather it was sold or used by orignal owener.

In any case the interest calculation will be from the date of utilization till the date of nreversal.

Presently the interest rate is 15% and not 18% but that also depends on the date of issue of DEPB.

 

AI Summary

Interest on DEPB reversal accrues from license utilization or bill of entry until reversal, with rate determined by issue date. Interest on reversal of DEPB is payable where the licence has been utilised; interest runs from the date of utilisation-identified by one respondent as the Bill of Entry date-until reversal. CENVAT credits must be reversed with interest when the licence was utilised. The applicable interest rate varies with the DEPB issuance date; if the licence remains unutilised it may be surrendered to the issuing authority to close the file.