depb

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This query is : Resolved

G.MANIKANDAN (Querist)

25 June 2011 it is understood that depb is included in the definition of goods in TNVAT ACT,2006.Now, it is clarified vide Lr.No.VAT CELL 33859/2007(VCC NO.833)Dt.28.06.2007 that if the petitioner resold depb license, they have to pay 4% tax and avail input tax credit since they are not using the scrip for their own purpose.
i want to clarify here that why the term resold has been mentioned here and what is the significance of this term here.
it is understood that exporter is entitled to depb scrip as incentive given by govt.to him.
if the exporter has sold the depb to another party instead of using that scrip in his own business to another pary,it is the first sale by him.whether this first sale attracts vat 4% Since in the circular the term resold has been used and this is only first sale.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

26 June 2011 First understand what is EDPB. It is a incentive given to the exporters. If the exporter is not using and selling the same he is directly making profit and therefore the govt. has imposed the tax which is to be paid when the exporter first sales the DEPB benefit to any outsiders.

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