The full form of RODTEP rate is reemission of Duties and taxes on Exported products. It is launched in recently year 2020 but finally it has been implemented recently on first Jan 2021. The motive in launching this plan by the government was to reduce the rate of taxes on supplied material.
The strategy is launched for only supplied outcome not for the import export services. Before RODTEP project there was another measure known as Merchandise Exports Incentive Scheme. This plan replaced this MEIS scheme.
The main funda to launched this strategy to reduce the duties and taxes on the exported goods to improve the marketing situation of the exporters by these exports will automatically get increase. To increase exporting business rapidly government of India took this step.
a. The main is to boost the exporting business globally and also to return back various taxes applied on exporting market. Before this proposal there were many taxes of state and central government of which taxes are not giving back to the trader.
but now it become easy for the supplier because they get their refund back by using this line of action. For example, VAT on fuels used while transportation, while manufacturing electricity there will be duty on electricity.
c. The other motive is to provide automatic cash to the supplier through the Input Tax Credit
(ITC). Now what is ITC? ITC is Input Tax credit this tax is applied on the goods at the time of purchasing good or we can say that at the time of purchasing raw materials and services also.
By using this You can reduce the tax which you have paid at the time of purchasing goods. Only registered person under GST can claim for this ITC project. To boost the global trade business. This helps him to achieve the international trade meet.
Ministry of commerce and industries are there who deals with the exports in our country. Right now, the minister of Ministry of commerce and industries is Piyush Goyal RODTEP project replaces previous program i.e., MEIS project. Before this program the rate had not been finalized.
This based on the principle that tax should be remitted or refunded to the exporter. Due to the step taken by the government to pay and remit the refund to the supplier will proved beneficial for the supplier. It will help the them financially and also in growing their business.
It proves beneficial for the user to remove the uncertainty related to exporting products from their mind and also will help him in knowing the clear benefit of the business. Now he can file new contract of export business with proper benefit.
Now a days there are large rush on exporting business with great competition. So, this program will prove like a boon to overcome the stress of exporting business completion. Under this various tax on central and state and taxes on input goods is refunded to the supplier.
This RODTEP scheme will help the supplier to raise the Indian goods in the global export market and help the trader in paying to the products by providing refund given to the supplier. In other words, we can say that it provides financial assistance to the traders.
RODTEP rates are already fixed. Once the rate is announced for the exporting products then it automatically RODTEP rates. There are three sectors like Steels, Chemical and Pharmaceutical will not get benefit from RODTEP scheme.
Because they done without incentive.
1.Priorities were given to labour incentive sectors. Here all the sectors are included for exporting materials but services are not included.
2.There is no minimum turn over criteria is included in it.
3. The goods exported through e- commerce platform is also included under scheme.
4. The condition is also applied on selling good. The transporting goods should be from India only and also reexported goods are not included. The origin of transporting products should be India.
Commerce and industry ministry announced that RODTEP will vary from 0.5 to 4.3% of export value. It covers the sector like electrical, electronics and machinery, agriculture, leather and gems, plastic, automobile and jewellery.
Sectors like steel, chemicals and pharmaceutical is not included under this scheme and they are excluded to all the benefit. Hope that the exporting business will get benefit from this scheme in raising their exporting industries to a height globally.
The refund would be transferred in ledger account with customs. The refund transferred in ledger account of trader is transferrable duty scrip. He uses this refunded amount to further pay their duties and also use this transferrable amount for future use.
This money also used by trader to transfer in other’s trader amount. This transfer duty scrips are maintained via electronic ledger. It is maintained by electronic ledger to overcome the delay of transferrable scrip. This program is given to multi sectoral scheme like textile sectors.
As much goods you exported you will get some remission in terms of percentage of a a total supplying goods’ goods are not included in this theory. The manufacture of the material should be in India.
RODTEP is the big system launched by government of India to promote the export business globally. This is launched by government of India. This project reduces the tax burden imposed on supplier.
This benefits those company who have required more working capitals like horticulture, textile, auto, Coffee and tea etc. In other words, we can say that labour intensive sector get benefit from this RODTEP theory.
It will get prove best for exporting business. Government wanted to support or we can say that promote foreign trade business that’s why government of India launched this RODTEP venture. In this way our supplier can raise their global business to a height.
Now days in tough competition of send overseas business RODTEP program proved boon and it also proved boon in raising the living standard of the labour capital business.
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