Rebate v/s Refund

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Ajay Gumbar

Ajay Gumbar (Querist)
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26 May 2009 What is the difference between Rebate and refund? Please cover procedural aspect as well.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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27 May 2009 Refund - Under Rule 5 of Cenvat Credit Rules - accumulated credit to be refunded.
Rebate u/n 11 or 12 - Rule 5 of Export of Services Rules - Input services used in export refunded. Alternative tax paid on export of services ( by utilising credit) rebated.
For procedures pl see a good commnetary. Both processes are inodinately long and full of ted tapism at present.

Ajay Gumbar

Ajay Gumbar (Querist)
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27 May 2009 If in both the cases the amount is refunded by the department (though under different rules and reasons), why the word "rebate" used?

Ajay Gumbar

Ajay Gumbar (Querist)
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04 July 2011 Waiting for reply..

Aashok Kumar Sharma online

Aashok Kumar Sharma online

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20 July 2025 Refund = You get back money because you paid too much or have accumulated credit.
Rebate = You pay less tax from the start as a concession.

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