{"id":493,"date":"2020-08-18T18:15:12","date_gmt":"2020-08-18T12:45:12","guid":{"rendered":"http:\/\/importexportlicence.com\/?p=493"},"modified":"2020-08-18T18:15:14","modified_gmt":"2020-08-18T12:45:14","slug":"duty-credit-scrips-what-are-these","status":"publish","type":"post","link":"https:\/\/importexportlicence.com\/index.php\/2020\/08\/18\/duty-credit-scrips-what-are-these\/","title":{"rendered":"Duty Credit Scrips: What are these?"},"content":{"rendered":"\n<h2 id=\"what-are-duty-credit-scrips\">What are Duty Credit Scrips?<\/h2>\n\n\n\n<p>Duty Credit Scrips (DCS) is an export promotion benefit offered by the Government of India under the Foreign Trade Policy (FTP) 2015-20. As with other export benefits, the aim is to incentivize exporters so that they boost the inflow of foreign exchange to India.<\/p>\n\n\n\n<p>A DCS provides tax incentives on exports, which can be used by exporters to set off their import duties. It is issued under the Merchandise Exports from India Scheme (MEIS), Service Exports from India Scheme (SEIS), and the\u00a0Export Capital Goods Scheme.<\/p>\n\n\n\n<p>FTP 2015-20 lays down the features and the provisions related to DCS. The scheme is implemented and administrated by the Government\u2019s Ministry of Commerce and Industry, in association with the\u00a0Directorate General of Foreign Trade (DGFT).<\/p>\n\n\n\n<h2 id=\"what-are-the-uses-of-duty-credit-scrips\">What are the uses of Duty Credit Scrips?<\/h2>\n\n\n\n<ul><li>DCS can be used by an exporter to pay their tax liabilities. It can be used against tax liabilities arising out of basic customs duty, additional customs duty, safeguard duty, transitional specific safeguard duty, and anti-dumping duty. DCS can be transferred to others, but it cannot be used to set off GST, compensation cess, and education cess.<\/li><li>From the date of issue, a DCS remains valid for 24 months. But the benefits don\u2019t need to cease after two years.<\/li><li>If the exporter doesn\u2019t have a foreseeable use of the DCS within the validity period, they can always transfer it to another person who can use it against their own outstanding tax liability.<\/li><li>Additionally, the DGFT can also revalidate a DCS if the exporter submits a special request, under exigent circumstances.<\/li><li>It is clear that the duty credit scrips are the instruments to award incentives to the exporters with the objective of the export promotion by allowing them to set off the basic customs duty against it. It is also to be noted that the duty credit scrips are not allowed to set off the IGST\/CGST\/SGST liability.<\/li><\/ul>\n\n\n\n<h2>How Duty Credit Scrips work?<\/h2>\n\n\n\n<p>DCS helps an exporter limit their cash outflow in tax liabilities and frees up cash for much-needed working capital to meet export orders. An exporter gets a scrip of 2% to 7% (of his export value) depending upon the EXIM Policy regulations. Imagine a situation where an exporter has received an export order and needs to import raw materials to begin the production process. Naturally, the exporter will need funds to execute both the production and despatch. At this time, the last thing the exporter would want is to pay import duty on the purchase of raw materials, eating into their\u00a0working capital. Having DCS takes that burden off the exporter\u2019s shoulders. For instance, if the exporter has a DCS balance of Rs. 1 lakh and Rs. 1.5 lakh is customs duty liability for import of raw materials, they will need to pay only the difference (Rs. 50,000). In other words, they can utilize the Rs. 1 lakh in DCS towards the outstanding customs duty liability.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What are Duty Credit Scrips? Duty Credit Scrips (DCS) is an export promotion benefit offered by the Government of India under the Foreign Trade Policy (FTP) 2015-20. As with other export benefits, the aim is to incentivize exporters so that they boost the inflow of foreign exchange to India. A DCS provides tax incentives on [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":494,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[33,32,34,35],"tags":[42,41,36,37,39,40,38],"jetpack_featured_media_url":"https:\/\/i2.wp.com\/importexportlicence.com\/wp-content\/uploads\/2020\/08\/CUSTOMS-DUTY_1200.jpg?fit=1200%2C800&ssl=1","jetpack-related-posts":[{"id":516,"url":"https:\/\/importexportlicence.com\/index.php\/2020\/08\/19\/how-to-apply-for-duty-credit-scrips\/","url_meta":{"origin":493,"position":0},"title":"How to apply for Duty Credit Scrips?","date":"August 19, 2020","format":false,"excerpt":"There are multiple types of Duty Scrips i.e. different category of Duty Scrips that an exporter receives basis on its item of export. And the percentage i.e. amount of the benefit depends upon the exact HSN code and country of export. Current prevalent duty scrips are MEIS, SEIS, RosCTL and\u2026","rel":"","context":"In &quot;Documentation&quot;","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1186,"url":"https:\/\/importexportlicence.com\/index.php\/2022\/01\/15\/rice-exporters-eligible-for-export-incentives-to-receive-rodtep-licences\/","url_meta":{"origin":493,"position":1},"title":"Rice Exporters eligible for Export Incentives, to receive RoDTEP Licences","date":"January 15, 2022","format":false,"excerpt":"RoDTEP stands for Remission of Duties and Taxes on Export Products. It is a new scheme that is applicable with effect from January 1st, 2021, formed to replace the existing MEIS (Merchandise Exports from India Scheme). The scheme will ensure that the exporters receive the refunds on the embedded taxes\u2026","rel":"","context":"In &quot;DGFT&quot;","img":{"alt_text":"Rice Exporters to receive RoDTEP Licences","src":"https:\/\/i1.wp.com\/importexportlicence.com\/wp-content\/uploads\/2022\/01\/Rice-Exporters-to-receive-RoDTEP-Licences.png?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":560,"url":"https:\/\/importexportlicence.com\/index.php\/2020\/08\/22\/merchandise-exports-from-india-scheme-meis\/","url_meta":{"origin":493,"position":2},"title":"Merchandise Exports from India Scheme (MEIS)","date":"August 22, 2020","format":false,"excerpt":"The objective of the Merchandise Exports from India Scheme (MEIS) is to promote the manufacture and export of notified goods\/ products. Entitlement under MEIS Exports of notified goods\/products with ITC[HS] code, to notified markets, shall be rewarded under MEIS. The rate(s) of rewards on various notified products [ITC (HS) code\u2026","rel":"","context":"In &quot;DGFT&quot;","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":553,"url":"https:\/\/importexportlicence.com\/index.php\/2020\/08\/20\/how-to-export\/","url_meta":{"origin":493,"position":3},"title":"HOW TO EXPORT","date":"August 20, 2020","format":false,"excerpt":"India\u2019s Foreign Trade i.e. Exports and Imports are regulated by Foreign Trade Policy notified by the Central Government in the exercise of powers conferred by section 5 of foreign trade (Development and Regulation) Act 1992. Presently Foreign Trade Policy 2015-20 is effective from 1st\u00a0April 2015.\u00a0\u00a0 STARTING EXPORTS Export in itself\u2026","rel":"","context":"In &quot;Documentation&quot;","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":605,"url":"https:\/\/importexportlicence.com\/index.php\/2020\/11\/27\/meis-rosctl-rate-27-nov-2020\/","url_meta":{"origin":493,"position":4},"title":"MEIS &amp; RoSCTL Rate \u2013 27 Nov 2020","date":"November 27, 2020","format":false,"excerpt":"Today\u2019s rate: MEIS \u2013 99.35% to 99.60% RosCTL \u2013 99.35% to 99.60% Connect with us on Call & Email: Sanjay Jain+91-9811048531, 7303938598tirupati207@gmail.com Sell Licence","rel":"","context":"In &quot;Duty Scrip Daily Rate&quot;","img":{"alt_text":"daily meis rosctl rate","src":"https:\/\/i1.wp.com\/importexportlicence.com\/wp-content\/uploads\/2020\/08\/daily-rate.jpg?fit=1000%2C698&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":602,"url":"https:\/\/importexportlicence.com\/index.php\/2020\/11\/25\/meis-rosctl-rate-25-nov-2020-2\/","url_meta":{"origin":493,"position":5},"title":"MEIS &amp; RoSCTL Rate \u2013 25 Nov 2020","date":"November 25, 2020","format":false,"excerpt":"Today\u2019s rate: MEIS \u2013 99.25% to 99.50% RosCTL \u2013 99.25% to 99.45% Connect with us on Call & Email: Sanjay Jain+91-9811048531, 7303938598tirupati207@gmail.com Sell Licence","rel":"","context":"In &quot;Duty Scrip Daily Rate&quot;","img":{"alt_text":"daily meis rosctl rate","src":"https:\/\/i1.wp.com\/importexportlicence.com\/wp-content\/uploads\/2020\/08\/daily-rate.jpg?fit=1000%2C698&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/importexportlicence.com\/index.php\/wp-json\/wp\/v2\/posts\/493"}],"collection":[{"href":"https:\/\/importexportlicence.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/importexportlicence.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/importexportlicence.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/importexportlicence.com\/index.php\/wp-json\/wp\/v2\/comments?post=493"}],"version-history":[{"count":2,"href":"https:\/\/importexportlicence.com\/index.php\/wp-json\/wp\/v2\/posts\/493\/revisions"}],"predecessor-version":[{"id":497,"href":"https:\/\/importexportlicence.com\/index.php\/wp-json\/wp\/v2\/posts\/493\/revisions\/497"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/importexportlicence.com\/index.php\/wp-json\/wp\/v2\/media\/494"}],"wp:attachment":[{"href":"https:\/\/importexportlicence.com\/index.php\/wp-json\/wp\/v2\/media?parent=493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/importexportlicence.com\/index.php\/wp-json\/wp\/v2\/categories?post=493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/importexportlicence.com\/index.php\/wp-json\/wp\/v2\/tags?post=493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}