Organisation : Directorate General of Foreign Trade (DGFT)
Facility Name : Remission of Duties and Taxes on Exported Products (RoDTEP)
Applicable Country : India
Website : https://www.dgft.gov.in/CP/?opt=RODTEPARR
What is RoDTEP?
The Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP), has been operationalized for exports. The Scheme provides a mechanism for re-imbursement of taxes/ duties/ levies, which are currently not being refunded under any other mechanism, at the central, state and local level, but which are incurred in the process of manufacture and distribution of exported products, to the exporting industries in India. Exporters of eligible items under the Scheme are being issued e-scrips as refund. The e-scrips are transferable and are used for payment of basic customs duty.
Related / Similar Facility : DGFT Scrip Transfer
How To Apply For RODTEP Annual Return?
1. These instructions are to be read with relevant Public Notice and Policy – Provisions.
2. Separate return applications are required to be filed for DTA and for AA/EoU/SEZ Exports.
3. If the total RoDTEP claim for a given IEC exceeds Rs. 1 crore in a financial year, filing the Annual RoDTEP Return (ARR) is mandatory. Conversely, if the total claims for a given IEC remain below Rs. 1 crore for the financial year, you need NOT file the ARR.
3.1. Once you qualify under the rule above, and yet none of the individual 8-digit ITC- HS codes crosses Rs. 50 lakh in RoDTEP claims, you may file the ARR only for the 8 digit code under which you claimed the highest amount.
3.1.1. For example, if your total RoDTEP claim in a year amounts to Rs. 1.2 crore— where the distribution is
-ITC-HS1: Rs. 20 lakh,
-ITC-HS2: Rs. 30 lakh,
-ITC-HS3: Rs. 40 lakh, and
-ITC-HS4: Rs. 30 lakh,
you need to file an ARR only for ITC-HS3, since it represents the highest claim.
3.2. However, after qualifying under the 1 cr rule, if any individual 8-digit ITC-HS code exceeds Rs. 50 lakh in RoDTEP, an ARR must be filed for each of those codes.
3.2.1. For instance, if your total RoDTEP claim is Rs. 1.2 crore, where the distribution is
-ITC-HS1 at Rs. 60 lakh,
-ITC-HS2 at Rs. 51 lakh,
-ITC-HS3 at Rs. 3 lakh, and
-ITC-HS4 at Rs 6 lakh,
you are required to file ARRs for ITC-HS1 and ITC-HS2, while you may ignore the remaining codes whose claims are below the Rs. 50 lakh threshold.
4. The Tax/Duties/Levies need to be provided in the fields on pro-rata basis for export products on which the retrun is being filed.
5. Wherever approximation is used for calculation of taxes/duties/levies etc. the same should be justified and substantiated at the time of scrutiny in case the return is picked up for scrutiny on the Risk Management System.
6. The return should be complete to the extent possible. Minor items with low value may be omitted if they don’t significantly alter the amount of remission claimed.
7. The details of the taxes/levies should be limited to such taxes/levies which are not currently being rebated/refunded through any other mechanism such as GST refunds or exemptions by state/central government.
FAQ For RODTEP Annual Return
Frequently Asked Questions FAQ For RODTEP Annual Return
Is it required for merchant exporters to also file ARR? In such a case, how should a merchant exporter get the details from the manufacturer?
Yes, merchant exporters who have availed over Rs 1 Cr. Of RoDTEP in the given financial year are expected to file ARR by tying up with the manufacturer supplier of the goods for providing the information. The rules of Para 3 of the general instructions given in this manual shall also apply for merchant exporters.
How shall we arrive at the tax amount claimed on the fuel used for transportation. For example, I have an invoice of transport charges from the transporter without any fuel consumption and associated taxation details.
The firm should follow the same reporting method that is used before the RoDTEP committee for fixation of RoDTEP rate. Alternatively, the firm may establish an approximation of arriving at fuel charges and associated taxation based on a survey with their transporters and the same may be used as a basis for calculation of transportation related refunds one full financial year. The details of such approximation should be kept ready for verification for the stipulated period.
If the actual claim amount received under the RoDTEP Scheme is less than the total RoDTEP claim value of Rs. 1 Cr or more, are the exporters required to file the Annual RoDTEP Return?
The exporters are required to file the annual RoDTEP Return if the the total RoDTEP claim value in more the Rs. 1 Cr or more. For example- If the total RoDTEP claim value is Rs. 1,00,00,000, however, the actual claim received is Rs. 95,00,000, the exporter is required to file the Annual RoDTEP Return