RODTEP Scheme Details, Features, Benefits, Eligibility, RODTEP Vs MEIS.
RODTEP Scheme
The full form of RODTEP is Remission of Duties and Taxes on Export Products. On the 1st Jan 2021, this scheme has been started. The Existing Merchandise Exports From India Scheme (MEIS) has been replaced by this yojana. This yojana make sure that the refunds will be acquired by the exporters on the engrained taxes and duties formerly non-recoverable.
Some Export Subsidy Programmes Recommended to be Withdrawn: –
- Merchandise Exports from India Yojana,
- Export Oriented Units Yojana,
- Electronics Hardware Technology Parks Yojana,
- Bio-Technology Parks Yojana,
- Export Promotion Capital Goods Yojana,
- Special Economic Zones Yojana,
- Duty-Free Imports for Exporters Yojana.
RODTEP Scheme Features
Refund of Formerly Non-Refundable Duties and Taxes: – Under this yojana, now the VAT, Coal Cess, Mandi Tax, Central Excise Duty on fuel etc will be refunded. All the things under the MEIS and the ROSTCL are now under the realm of the RODTEP Yojana.
Automated System of Credit: – In the form of transferable electronic scrips, the refund will be issued. And via an electronic ledger, these duty credits will be tracked and maintained.
Quick Verification Via Digitisation: – Through the Digital Platform, the clearance take place at a much faster rate. With the aid of an IT-Based risk management system will do the authentication of the records of the exporters to make sure accuracy and speed of transaction procedure.
Many Sector Yojana: – Under the RODTEP Yojana, all sectors, adding the textiles sector are enclosed to make sure constancy long-range areas. besides, a devoted committee will be build to decide concerning the order of introduction of the yojana across the several sectors, what degree of benefit is to be expanded to each sector, and such associated matters.
Eligibility Criteria
- The RODTEP Scheme Benefits can be avail by All sectors, adding the Textiles Sector. A priority will be given to the Labor-Intensive Sectors that enjoy benefits under the MEIS Yojana.
- For the benefits of this yojana, both Merchant exporters and Manufacturer Exporters are eligible.
- In order to claim the RODTEP, there is no particular Turnover threshold.
- Under this yojana, the Re-exported products are not eligible.
- In order to become eligible to acquire the advantage of this yojana, the exported products require to have the country of origin as India.
- To acquire the benefit of this yojana, the Export Oriented Units and Special Economic Zone Units are also eligible.
- Where the goods have been supplied through courier via e-commerce platforms, RODTEP Yojana applicable to them also.
Benefits
- The RODTEP Yojana would repay the embedded Local, State, Central duties/taxes that were yet not being pay back.
- The refund would be credited in an exporter’s ledger account with customs and used to pay simple practices duty on imported things. The credits can also be transferred to other importers like MEIS/SEIS Scrips.
RODTEP Vs MEIS
RODTEP: –
- Duties and Taxes refund which are not being refund by any other yojana currently.
- Compliant with the WTO Norms.
- Product based % is yet to be informed.
- Published in the form of exchangeable duty credit or electronic scrips which will be kept-up through an electronic record.
MEIS: –
- Incentives accessible on the goods export.
- Not Compliant with the WTO norms.
- Two to five percent of the FOB Value of exports.
- Supplied in the form of Physical Transferable Scrips.
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