TaxTMI 
TaxTMI 
Drawback Schedule 2007-08
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....y steel, dyes and chemicals, the drawback rates have been reduced. The reduced rates will take effect prospectively from 18.7.2007, i.e. the date of coming into force of the notification. 2. Like in previous years, 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), share of imports in the total consumption of inputs and the applied rates of duty. The incidence of duty on HSD/Furnace Oil has been factored in the drawback calculation. The incidence of service tax paid on taxable services which are used as input services in the manufacturing or processing of export goods has also been factored. The Commissioners may ensure that the exporters do not avail of the refund of this tax through any other mechanism while claiming the all industry rate of drawback. 3. The Drawback Schedule includes several new items. These include mats/rugs made of LDPE/LLDPE, leather-cum-synthetic/textile footwear upper, coir mats, parts of electrical apparatus made of copper/brass, handicraft/artware of stainless steel and certain ....
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....xisting rate of 12.5% (grey) / 14% (dyed). In the case of woven fabrics of synthetic / artificial filament yarn, the drawback rate has been revised upwards to 10.5% (grey) and 11.8% (dyed). Insofar as synthetic / artificial fibres (Chapter 55) are concerned, the new drawback rate is 16% as against the existing rate of 13.5%. In the case of yarn of synthetic / artificial staple fibres, the new rates are 14.4% (grey) and 17.5% (dyed). In the case of woven fabrics of synthetic / artificial staple fibres and / or man-made filament yarn, the new rates are 10.8% (grey) / 12.1% (dyed) as against the existing rates of 8.5% (grey) / 10% (dyed). The Schedule may be perused for details. e) Carpets and Floor Coverings: The new drawback rate for hand knotted woolen carpets is 12.5% with a cap of Rs.700 per sqm. as against the existing rate of 9.4% with a cap of Rs.565 per sqm. For silk carpets, the new drawback rate is 15.5% with a cap of Rs.2750 per sqm. as against the existing rate of 11.8% with a cap of Rs.1600 per sqm. The drawback rate on cotton durries is fixed at 11.5% with a cap of Rs.26/kg as against the existing rate of 9.4% with a cap....
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....loves have also been revised upwards. 5.1 The new drawback rate for saddlery and harness, made of leather is 10.2%. The corresponding rate for saddlery and harness, made of non-leather is 9.5%. Saddlery and harness are horse riding equipment which consist of saddlery used on horse back for the rider to sit and harness goods which cover rest of the horse riding equipment, such as bridles, reins, breastplates, martingales, crupper, body rollers, halters, traces, collars, etc. These goods are exported individually or in sets, depending upon the requirements of the overseas buyers. In view of this, saddlery and harness of leather or non-leather under drawback serial Nos. 420101, 420102 & 420103 exported individually or in sets may be allowed drawback @ 10.2% or 9.5%, as the case may be, provided they are otherwise classifiable under heading 4201. Pending provisional assessments, if any may be finalized accordingly. 5.2 The term 'articles of leather' in chapter 42 of the Drawback Schedule has been defined in condition 14 of the said notification as any article wherein 60% or more of the outer visible surface area (excluding shoulder s....
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....awback rates have not been changed. In the case of electrical machinery and equipment under Chapter 85, the rates have been revised downwards marginally. v) Bicycle & Bicycle Parts (Chapter 87) and Sports Goods (Chapter 95) 8. The drawback rates on bicycles and bicycle parts have been revised upwards taking into account the duty incidence on inputs and the current FOB realization on exports. The new rates are 13% for bicycles and 13%-15% on parts thereof. The drawback rates on sports goods have also been revised upwards. The drawback rate on the residual heading for sports goods has been increased from 1% to 4%. The drawback rate on toys has also been increased to 6% from the existing rate of 2.1%. vi) Writing Instruments (Chapter 96) 9. The existing drawback rate on ball point pen is 7% with a cap of Rs.75 per 100 pcs. The drawback rate on this item has been revised upwards to 8.5% with a cap of Rs.225 per 100 pcs. The drawback rate on felt tipped pen has also been increased from 12% with a cap of Rs.200 per 100 pcs to 13.3% with a cap of Rs.275 per 100 pcs. Further, on high value fountain pens (Rs.500 & above) t....