What is RoDTEP Scheme?
RoDTEP scheme is notified for the remission of duties, taxes, and other levies at the Central, State, and local level which is borne on the exported goods manufactured in India. It also includes the incidence of taxes suffered post manufacturing of the goods i.e., in respect of the distribution of exported goods. The benefit is not available in respect of those duties or taxes which are otherwise exempted or remitted or credited. The benefit is given as the percentage of FOB or a fixed amount per unit of measurement as prescribed in Appendix 4R to the Notification
About this newsitem …
It is not uncommon to see that each and every country in the world is trying to encourage their exporters to do more exports to other countries by giving various incentives/rewards which in turn fetches foreign exchange into the country. There is a common saying that only Goods should be exported, not the taxes. Hence, the Government has been providing various refunds/rewards to exporters by way of duty drawback, GST refund, MEIS, SEIS, TMA etc. Among these, MEIS (Merchandise Export from India) Scheme notified under Chapter 4 of the Foreign Trade Policy 2015-20 had been popular among the goods exporters. The objective of MEIS Scheme was to provide incentive for export of goods. The USA had filed a compliant against India at World Trade Organization (WTO) which governs trade between countries. The contention of the USA was that the incentives provided under MEIS to Indian Exporters was against the norms of WTO. The case was decided in favour of USA leaving India under compulsion to come with new scheme to replace MEIS. Hence, Union Cabinet during the month of March 2020 has approved a new Scheme RoDTEP (Remission of Duties or Taxes on Export Products) which is WTO compliant to replace MEIS. Though the effective date of RoDTEP was fixed as 1st January 2021, only a press release was issued on 31st December 2020 which stated that the committee will notify the rates under the new scheme soon.
Source Taxguru
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