Refund of CENVAT Credit, Rule-5
The scheme of refund has been simplified by substituting Rule 5 of CCR,
2004. The new scheme does not require correlation between exports and input
services used in such exports.
Duties or taxes paid on any goods or services which qualifies as inputs
or input services will be entitled for the refund calculated as specified in
the rule itself.
Rule 5
Manufacturer / Service
Provider
Clears / Provides
Product / Output
Service
FOR EXPORT
Without payment of
Duty / Service
Tax
Shall be ALLOWED REFUND
Of CENVAT CREDIT
Refund Amount
[(Export
Turnover of Goods + Export Turnover of Services) × Net Cenvat Credit] ÷ Total Turnover
Notes
1. Apply on
or after 1st April 2012
2. Total Turnover means
sum total of:
i. All Excisable goods
cleared
Including:
Exempted Goods
Dutiable Goods
Excisable Goods Exported
ii. All
inputs removed as such against an invoice
iii. Export Turnover of Services
Means:
Payments
received for export services
+Export
services provided completely for which payment received in advance
- Advances received for
export services for which the provision of services not completed.
3. NO REFUND
of credit WHEN DRAWBACK has been AVAILED.
4. Export Turnover of Goods means:
Value of
final product and intermediate product cleared & Exported without payment
of DUTY.
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