Evaluation & Claiming

Duty Drawback

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 Duty Drawback under FTP 2015-20

 Foreign Trade Policy (‘FTP’) provides the basic framework of policy and strategy to be
followed for promoting exports and trade.

 As per the Para 7.02 of FTP 2015-20, supply of goods by manufacturer from DTA units to
EOU shall be regarded as “Deemed Exports”.

 Such supplies have been provided with an option of claiming refund of deemed export
drawback as per ‘All Industry Rate’ of Duty Drawback Schedule as notified from time to
time. (Notification No.28/2015-20 dated October 31, 2019- Amendment in Chapter 7 of
the FTP 2015-20)

 However, the said drawback would be granted subject to the condition that EOU unit
shall not avail CENVAT credit on such excisable inputs.

 Procedure has been laid down in Para 7.01 and Para 7.05 of Chapter 7 of Hand Book of
Procedures (‘HBP’)

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 Duty Drawback under FTP 2015-20

 Further, as per Para 7.09 of HBP, Customs, Central Excise Duties and Service Tax
Drawback Rules, 1995/ 2017 shall apply mutatis mutandis to deemed exports scheme
subject to the policy laid down in Para 7.01 and 7.05 referred above.

 Application may be made either by the recipient of the deemed supply or the supplier of
deemed supply.

 All Industry Rate Schedule as notified by Department of Revenue for time to time is
considered for the drawback.

 The Company could evaluate filing the drawback claims in relation to the domestic
procurements made from DTA manufacturers to EOU unit/s.

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 Challenges

 It’s a new planning opportunity for EOUs and would take some time for the officers
to interpret the provisions and provide the benefits.

 The application and issue process is manual and not electronic.

 The document requirement for claiming the drawback is quite extensive.

 Certifications from Multiple tax Authorities would be required for claiming

drawbacks.

 Vendor supplying the goods would be required to provide disclaimers certificates

and banker certificates.

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 How do we overcome the challenges

 Assist in necessary documentation required for the purpose of duty drawback

claim.

 Represent the Company before various tax Authorities in connection with the claim
and obtaining attestation wherever required.

 Provide clarifications if any with respect to the drawback claim.

 Liaise with the concerned Authorities for grant of claim based on our experience.

 Follow up on a consistent basis for speedy processing of the claims.

We have the right blend of talent and experience in handling similar matters for
various large clients.

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About Us

 ValuFocus Corporate Services Private Limited (ValuFocus) is a Tax, and Regulatory

Advisory Services Company.

 At ValuFocus we thrive to deliver more value by applying the best of ourselves to

every task at our hand. ValuFocus works with the business houses to adopt a
sustainable pragmatic approach towards their regulatory environments.

 Our knowledge-based foundation and delivery propositions anchor finance and tax
functions leaving our clients to focus on their business and core competencies.

 ValuFocus is driven by a team of qualified accounting and tax professionals and

also tax veterans having vast expertise to match the standards and requirements of
the industry.

 ValuFocus in its short stint has been able to gain confidence of Corporate Giants
including many Fortune 500 Companies.

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 Corp Off: # 15 IV Floor | 1st Main Road | Tata Silk Farm |
Basavanagudi | Bangalore | 560 004 | India |
Tel: +91 80 2676 6668 / 99456 66773
Email : pavan.kumar@valufocus.com

Branches: Delhi | Mumbai | Hyderabad | Pune | Chandigarh

www.valufocus.com