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Rodtep

The RODTEP scheme, or Remission of Duties and Taxes on Exported Products, is a newly designed plan initiated by the Indian Government to better assist exporters. On January 1, 2021, the day it was first officially confirmed in the press, this plan replaced the pre-existing MEIS scheme. The scheme’s main goal is to reimburse all exporters for previously reimbursable taxes and duties. This provides new benefits to exporters for exporting products outside of India and encourages global trade.
The scheme is very beneficial for small and medium-sized businesses in terms of ease of exports and recuperates the import substitution funds. The scheme is also beneficial for exporters because it extends the time to clear the documents from 1 month instead of 10 days now. In addition, this scheme helps save money on taxes and get a refund in case of duties on exported goods/services.
The scheme was officially launched on 13.01.2020 by the Government of India via a press release. The scheme is a part of the larger plan to increase trade, exports, and revenue for the government of India. The scheme came after the Modi Government doubled duty-free exports for six months (to 12 months). The scheme extends the Merchandise Exports from India (MEIS) and ROD/VAT Remission Scheme, which were previously available to exporters under different categories. But, now these are being made as one unified deal.

Significance of RoDTEP

The RoDTEP scheme was launched to increase exports and its revenue for the Government of India. This is signified by its approval by the government and registration at the Ministry of Commerce, India. The scheme has been introduced to replace the MEIS and VAT Remission Scheme, which exporters use on a small scale. The new system will allow exporters to claim their export-related tax benefits more efficiently and on a much larger scale, thus promoting trade conveniently

The Benefits of RoDTEP: -

  • The refund will be made irrespective of the value of export goods/services. Hence,this measure would encourage export from India without much financial burden on exporters.
  • The procedure is easier to follow and simple.
  • In the case of export goods/services with a declared value of not exceeding USD 50,000 per transaction, a full refund is given without any taxation; taxes and duties will be refunded if the claimed value exceeds USD 50,000 per transaction.
  • Exporters will have to pay VAT/Taxes and duties when exporting goods/services and need not pay them during the import of capital goods.
  • Tax and duty refunds will be processed within 7 days of the exporter submitting the invoice.