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Duty drawback

MOHIT LUTHER (ACCOUNTANT) (118 Points)

08 September 2016

Whether a trader can avail the benefit of duty drawback if goods are sold in Nepal by him. Please Explain .

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7 Replies

namrata attal (Student CA Final ) (49 Points)
Replied 09 September 2016

Duty drawback can be claimed by the person who have paid import duty on import. It can be claimed within 2 yrs of payment of import duty . So first see that trader is importer .

Export is taking goods out of india and there is nothing specifically mentioned in act that duty drawback cannot be claimed while exporting goods to nepal.

So according to me he can claim duty drawback if he have paid import duty and exported goods within 2 years.

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Ajit Hegde (CA - Final) (1367 Points)
Replied 10 September 2016

Even if the exporter has not imported, he can claim duty drawback. There is no restriction as such. drawback is admisible for nepal exports.

MOHIT LUTHER (ACCOUNTANT) (118 Points)
Replied 10 September 2016

Exporter bought goods from local market . Please explain the procedure which need to be followed to claim drawback.

Ajit Hegde (CA - Final) (1367 Points)
Replied 13 September 2016

Whether bought localy or imported, the procedure remain the same.. Refer to my replies to your earlier queries for the procedure

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mitul shah (owner) (22 Points)
Replied 13 September 2016

Please suggest how to Account for Duty Draw Back Received in our Books of Accounts as well as for Income Tax Purpose

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MOHIT LUTHER (ACCOUNTANT) (118 Points)
Replied 14 September 2016

You can Debit the Drawback recoverable account while crediting the account of duty drawback A/C ( treated as Income) with the amount of duty drawback as shown in papers. And later when amount is received you can debit the bank account and credit the drawback recoverable account.