The government is planning to replace the Duty Entitlement Pass Book (DEPB) scheme with the duty drawback scheme, which is originally established to roll out next month-end. Sources in the government indicate that new duty drawback rates may be 1-3% lower than
DEPB rates, reports CNBC-TV18’s Aakansha Sethi.
CNBC-TV18 learns that current ad-hoc rates, which were applicable since 2006 due to rupee appreciation, may be removed now. But car exports are unlikely to be included in the all India rates.
The Saumitra Chaudhury report on new rates is expected later this week and 1000 items will to be added to the duty drawback schedule. The transition mechanism is likely to be in place by September as the DEPB scheme expires on the 30th of September.
The Saumitra Choudhury panel now feels that this will be a good time to withdraw those ad hoc rates components since it will make the transition easy.
Source : moneycontrol.com