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difference between refund and rebate claim

kuldeep singh (MANAGER SCM) (32 Points)

13 January 2010

pls provide difference between refund claim and rebate claim

why two word used?? pls give information about procedure.

regds

kuldeep singh

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11 Replies

muttu (Article) (57 Points)
Replied 13 January 2010

please refer the rule 18 and 19 of Central Excise rule

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Arun Kumar Singh (GST Advocate) (15220 Points)
Replied 15 January 2010

Basic distinction between refund and rebate is that in case of refund, the amount is returned to the person who had paid it, while in case of rebate, the amount may be retured to some one else too.

1 Like

Jeevesh Mehta (Advocate- Corporate Commercial & Indirect Tax Advisory) (861 Points)
Replied 15 January 2010

Dear Kuldeep,

Refund is some thing which can arise in the normal course of transactions. Like Excess payment of duty, paid duty where it was not required to be paid.

Rebate is some thing which arises out of export transactions.

Regards

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 17 January 2010

Rebate is a mechanism by which alternatives to get monies back have been notified. At times they are simplar than the refund under rule 5. Also option of rebate on duty paid allows usage of old credits without link to the use for the exports.

2 Like

Ashish Ojha (Chartered Accountant) (469 Points)
Replied 18 January 2010

Mr. Arun, thanx for ur Answer. Can you please give any example.....

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Arun Kumar Singh (GST Advocate) (15220 Points)
Replied 19 January 2010

For example, in case of rebate of duty paid on inputs, the amount is returned to the exporter who cleared final products while duty was actually paid by supplier of inputs. Similarly, in case of export through merchant exporter, duty paid by manufacturer, while rebate can be granted to merchant exporter.

3 Like

Sunil Kumar G (AGM Taxation) (373 Points)
Replied 23 June 2012

Under Section 11B of the Central Excise Act, refund includes rebate also. Rebate as prescirbed under Rule 18 is a sort or mode of refund.

Amitabha Mukherjee (Sr. Manager, GST) (253 Points)
Replied 23 June 2012

''Refund is some thing which can arise in the normal course of transactions. Like Excess payment of duty, paid duty where it was not required to be paid.

Rebate is some thing which arises out of export transactions.""

Absolutely correct

Thnx

Amitabha

aditya jajodia (student) (21 Points)
Replied 21 October 2013

So basically in refund we get our money back for the reasons mentioned as above... but in rebate do we avail cenvat credit or get a part of our money back or we pay duty at subsidised rate??

Sukanta Laha (accountant) (26 Points)
Replied 23 July 2014

Dear Sir

I have a question in my mind that if a manufacturer will make an export under LUT and the manufucturer used raw material which was purchased after paying excise duty from local market or inter state, then the input credit can be claimed in cash to the central excise dept. Coz this input credit never be utilised by this manufacturer. If claim is possible then what documents will be furninsed??

Email id: lahasukanta @ gmail.com