Use of meis

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This query is : Resolved

Gargi Ranade (Querist)

28 July 2016 Dear All,

Recently we have received our first MEIS scrip from the authority .

I understand that this scrip can be used only against the Excise duty payable on domestic procurement , Customs Duty & Service Tax.

Please confirm that this scrip can not be used against excise duty payable on the sale of goods.

Can we sale the scrip ?

Further , if we use it against payment of service tax what shall be the procedure for the validation of scrip.

If we settle the service tax liability against the scrip can we take CENVAT credit for the said service tax paid through scrip.

Please reply.

Regards,

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

29 July 2016 MEIS= MERCHANDISE EXPORT FROM INDIA SCHEME

Refer to Para 3.15 of foreign Trade policy 2015-2020

"Additional Customs duty/excise duty/Service Tax paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications. Basic Custom duty paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per DoR rules or notifications."

Further note that "import under lease financing"

Refer to Para 3.16 of Foreign Trading Policy 2015-20"
Utilization of Duty Credit Scrip shall be permitted for payment of duty in case of import of capital goods under lease financing in terms of provision in paragraph 2.34 of FTP.

Gargi Ranade

Gargi Ranade (Querist)

29 July 2016 Thanks for reply. but can we use this scrip's for the payment of services coming under Reverse Charge Machanism

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