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difference between refund and rebate claim

MANAGER SCM



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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Article



please  refer the rule 18 and 19  of Central Excise rule

 
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Tax Consultant



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.


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Advocate- Tax/Corporate


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

 

 

 
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Chartered Accountant



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.


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Chartered Accountant



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

 
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Tax Consultant



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.


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AGM Taxation



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.

 
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excise executive



''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

 
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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??
 
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