TaxTMI 
TaxTMI 
All Industry Rates of Drawback, 2006-07- rates effective from 15.7.2006
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....r, the drawback rates have been determined on the basis of certain broad parameters including, inter alia, the prevailing prices of inputs, standard input/ output norms (SION) published by DGFT, share of imports in the total consumption of inputs and the applied rates of duty. As education cess is being collected as duties of excise/customs, the element of education cess has been factored in the drawback rates. The incidence of duty on HSD/Furnace Oil has also been factored in the drawback calculation. 3. A significant feature of the new Drawback Schedule is that the drawback rates now also take into account the incidence of service tax paid on taxable services which are used as input services in the manufacturing or pro....
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.... cap of Rs.29/kg. Likewise, the drawback rate on woollen worsted yarn (grey) - hosiery grade has been revised upwards to 7.2% with a cap of Rs.19/kg from the existing rate of 6.5% with a cap of Rs.17/kg. The dyed yarn - hosiery grade carries a higher rate of 8.3% with a cap of Rs.23/kg. The drawback rates on blended yarn and fabrics have been revised upwards accordingly. c) Cotton Yarn and Fabrics: The new drawback rate for grey cotton yarn of less than 60 counts is 4% with a cap of Rs.8/kg as against the existing rate of 3.5% with a cap of Rs.7/kg. The new rate for dyed cotton yarn of less than 60 counts is 5% with a cap of Rs.13.30/kg. In respect of cotton yarn of 60 counts and more, a higher ra....
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....hirts/tops of cotton and man made fibre blend, the new drawback rate is 7.2% with a cap of Rs.30 per piece as against the existing rate of 6.8% with a cap of Rs.28 per piece. The drawback rates on woven garments have been revised accordingly. As for ready made garments made up of silk and wool the rate provided is 6.7% with varying caps. f) Made Ups: In the made up category, the new drawback rate for bed linen, table linen, toilet linen, kitchen linen and curtains of cotton is 6.4% with a cap of Rs.64 per kg as against the existing rate of 5% with a cap of Rs.50 per kg. The new drawback rates on made-ups of manmade fibres and made-ups of silk/wool have also been revised upwards. The new rates are 7.5% and 6.9% resp....
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....ed a decrease from 5% to 2.2%. Taking into account the duty incidence and prices of inputs, the drawback rate on brass builder hardware and handicrafts of brass has been increased from 11% with a cap of Rs. 33/kg to 15% with a cap of Rs.75/kg. The same is the case with artware/handicrafts of copper where the drawback rate has been increased from 11% with a cap of Rs.44/kg to 15% with a cap of Rs. 110/kg. 7.2 In the case of stainless steel cutlery falling under Chapter 82, the drawback rate has been increased to 15% in line with duty drawback on stainless steel utensils. The same is the case with brass hardware items and other similar items under chapter 83 where the drawback rate is being provided at 15% on par wit....
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....nent of the drawback rate has been indicated in the Drawback Schedule. Taking into account the duty incidence and prices of inputs the drawback rates on 24 dyestuffs, 20 dye intermediates and 5 polymers have been revised upwards. The new drawback rates provided for these items are mostly in the range of 2%-3%. In the case of zinc oxide - IP / BP / USP Grade, the new drawback rate is 5.5% (customs) as against the present rate of 9.6% [5.7% (excise component) + 3.9% (customs component)]. Following a request from the Department of Commerce (DOC) and after examination of the cost data, for the first time a drawback rate of Rs.1050/MT (all customs) has been provided in respect of Furnace Oil and HSD supplied by domestic o....
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.....5% with a cap of Rs. 6.8/kg respectively w.e.f. 5.5.2005 and upto 14.07.2006. In this connection, notification No. 79/2006-Customs(NT), dt. 11.7.2006 refers. It may be mentioned here that these rates would have been available to the exporters under the existing Schedule but for the changes in classification as discussed above. The exporters are, of course, required to fulfil the stipulated conditions for availing of drawback. 13. The notification and the new Drawback Schedule may be gone through carefully to note the changes made therein. Though all care has been taken in formulating / publishing the rates, the possibility of inadvertent errors / omissions cannot be ruled out. It is requested that any error / omission notice....