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: Calculate from Bill of Entry Date; 18% Interest if License Used A query was raised regarding the calculation of interest on the reversal of the Duty Entitlement Passbook (DEPB) scheme following the re-import of rejected goods. The discussion focused on whether interest should be calculated from the date of the shipping bill or the DEPB license issuance. Responses indicated that if the DEPB license was utilized, duty and interest at 18% from the Bill of Entry date are payable. If not utilized, the license can be surrendered to the Directorate General of Foreign Trade (DGFT). Another response noted the interest rate as 15%, dependent on the DEPB issuance date.