Note: Interest is payable by the claimant on erroneous refund of duty drawback @ 15% per annum for the period beginning from the date of payment of such drawback to the claimant, till the date of recovery of such drawback [Section 75A(2) of the Customs Act, 1962]. One is called drawback under Section 74 of the Customs Act, 62 which allows drawback of duty paid on goods originally imported on payment of duty and subsequently re-exported. Any amount collected as Service tax but not deposited 24%: Notification No. Any person who receives a drawback of duties other than those levied under SIMA, shall receive, in addition to the drawback, interest at the prescribed rate, starting on the ninety-first day after the application for the drawback is received by the CBSA, and ending on the day the drawback is granted. Interest on drawback [Section 75A] : Section 75A provides for payment of interest on delayed payment of drawback. These numbers do not guarantee eligibility, but they provide an estimated figure on the potential refund. The decision is expected to help improve cash flows of exporters. is payable to the exporters if the claim is not settled within three months from the date of … GUIDELINES FOR APPLICANTS. Others 15%: Excise Duty (Section 11AA of the Excise Act) 15% (iii) Calculation sheet for interest claimed. Under section 74 of the Customs Act, duty drawback to the extent of 98 percent of the duty paid on imported goods can be claimed for re-export, provided the goods are re-exported within 2 years of payment of import duty. (2A) The payment of any duties or interest under this sections shall be made:- (a) in the case of an entry lodged by electronic transmission to the Use this calculator to evaluate potential duty drawback refunds. Duty Drawback, or the 301-1A, is a process by which an entity, known as the claimant, may recover up to 99% of the duty they paid on goods to enter those goods into the country & then either exported or destroyed those goods. Remember there are many facets of duty drawback with inclusions and exclusions, rules and regulations. INTEREST PAYMENT. Tax/Duty: Rate of Interest on delayed payment (Per Annum) Notification No. (a) Accordingly, where any drawback payable to a claimant under section 74 or 75 is not paid within a period of one month from the date of filing a claim for payment of such drawback, there shall be paid to the claimant, in addition to the amount of drawback, interest at the … Duty Drawback Calculator (Online Tool) October 30, 2019. Effective from: Service tax (Section 75 of the Finance Act, 1994) a. Tips for Calculating your Potential Return Duty Drawback 2019-08-22T12:46:43-04:00. The Centre on December 17 reduced the timeframe for processing of duty drawback claims to three days from seven days. 8% of the amount of the unpaid duty for each 5 day period or part thereof for which the duty remains unpaid from the date for payment specified in the notice until the duty is paid. A new Section 75 A has been incorporated in the Customs Act to provide for payment of interest on delayed payment of drawback. 29. There are several factors to consider when estimating your potential drawback refund. Interest at the rate of 15% P.A. The manner and time limit for filing the claims are governed by "Re- export of Imported Goods (Drawback of Customs duties) Rules, 1995. For payment of interest on delayed refund of duty drawback/terminal excise duty on deemed exports/ CST on supplies to EOU. The Central Government is empowered to grant duty drawback under section 74 and 75 of the Customs Act, 1962. 30. There are two types of drawback. 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