New Delhi, Aug 10 (IANS) The Finance Ministry has set up a committee headed by former Home Secretary G.K. Pillai for determination of ceiling rates under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. The scheme is to reimburse taxes and duties incurred by the exporters.
The two other members are Y.G. Parande, former Central Board of Indirect Taxes and Customs (CBIC) member, and Gautam Ray, former Chief Commissioner of Customs and Central Excise.
The committee will interact with administrative ministries, export promotion councils, commodity boards, trade bodies and other stakeholders to take their views on fixing the ceiling rates under the RoDTEP scheme.
The committee will work out the modalities of the calculation of duties, levies and charges at the central, state and local levels borne on the exported product. This will be done after calculating the prior stage cumulative indirect taxes on goods and services used in the production of the exported product.
The committee will recommend in their report a ceiling rate of Remission of Duties and Taxes on Export Products (RoDTEP) for sectors and items identified by the government.
As per the scope of the panel, the committee will determine the methodology, decide modalities of holding meetings, conduct field visits and study specific production processes and suggest a ceiling rate as part of its report.
The panel headed by Pillai will submit its main report to the government within three months from identification and prioritisation of sectors and items by the government and any supplementary report will be submitted in two months after the main report.
The RoDTEP is a scheme which aims to reimburse the taxes and duties incurred by the exporters such as local taxes, coal cess, mandi tax, electricity duties and fuel used for transportation, which are not getting exempted or refunded under any other existing scheme. The rebate would be claimed as a percentage of the Freight on Board (FoB) value of exports.