Source from DGFT
RoDTEP scheme :
It is WTO compliant, will reimburse taxes/duties/levies at the central, state and local level, which are currently not being refunded.
Objective :
- To boost exports Scheme for enhancing Exports to International Markets.
- To make Indian exports cost competitive and create a level playing field for exporters in International market.
- To give a boost to employment generation in various sectors.
Implementation : Items will be shifted in a phased manner from existing scheme MEIS to RoDTEP with proper monitoring & audit mechanism.
Items and Rates : An inter-ministerial Committee will determine the rates and items for which the reimbursement of taxes and duties would be provided, The rebate would be claimed as a percentage of the Freight On Board (FOB) value of exports
Refund Mechanism : Refund will be in the form of transferable duty credit / electronic scrip will be issued to the exporters, which will be maintained in an electronic ledger. The Scheme will be implemented with end to end digitization. In line with “Digital India”.
Advantages :
- The refunds under the RoDTEP scheme would be a step towards “zero-rating” of exports.
- This would lead to cost competitiveness of exported products in international markets.
- Better employment opportunities in export-oriented manufacturing industries.
- Increases the productivity, boost exports and contribute to the overall economy.
Taxes Covered : VAT on fuel used in transportation, Mandi tax, Duty on electricity used during manufacturing etc., these would be covered for reimbursement under the RoDTEP Scheme.
Effect of this Scheme : As and when the rates under the RoDTEP Scheme are announced for a tariff line/ item, Merchandise Exports from India Scheme (MEIS) benefits on such tariff line/item will be discontinued.