Exporters received a major relief with the government deciding to extend the benefits under the Duty Entitlement Pass Book Scheme (DEPB) by another three months till September 30, as it is still working on an alternative plan. The DEPB scheme, a popular tax refund scheme for exporters that came in force in June 1997, was due to end on June 30, 2011. Finance secretary, Sunil Mitra said that duty drawback would take its place after DEPB is phased out.’ We have extended Duty Entitlement Pass Book (DEPB) till September,' finance secretary said. The government has apparently set up a committee that would seek to replace DEPB with the duty drawback scheme.
The objective of the DEPB is to neutralize the incidence of customs duty on the import content of the export product. The neutralization is provided by way of grant of duty credit against the export product. Planning Commission member Saumitra Choudhury is heading an expert panel to work out the duty drawback rates for all export products. Exports under the DEPB scheme currently account for a quarter of the total exports, of which engineering, textiles and chemical sectors constitute nearly 70 percent.
The government had lost revenue of around Rs 8,000 crore under the DEPB scheme, said finance and revenue secretary and the scheme is also considered to be against the World Trade Organization rules, as it is a direct subsidy.
The 14-year DEPB scheme is extremely popular among exporters, covering nearly 52 percent of exports. The duty drawback, which reimburses the customs duty component, covers 15-20 percent of exports. Some major beneficiaries are engineering products, chemicals, plastics, leather, sports goods, food products, handicrafts, electronics and textiles. Steel Authority of India, Bajaj, Reliance Industries and Tata Steel are some companies getting huge benefits under the scheme.
The main difference between DEPB and the duty drawback schemes is that DEPB is disbursed in the form of DEPB scrip, while the drawback is taken as cash. Further, DEPB is administered by the commerce and industry ministry, while the drawback is administered by the revenue department under the finance ministry.
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MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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