1. The "RODTEP" scheme (Remission of Duties and Taxes on Exported Products) was introduced to replace which scheme?
SEIS (Service Exports from India Scheme)
EPCG (Export Promotion Capital Goods)
Duty Free Import Authorization
MEIS (Merchandise Exports from India Scheme)
Explanation:
RODTEP replaced MEIS because MEIS was found to be non-compliant with WTO rules. RODTEP ensures that exporters are refunded embedded taxes/duties that were not previously rebated.
2. Which institution primarily provides Export Credit Insurance in India?
EXIM Bank
ECGC (Export Credit Guarantee Corporation)
RBI
DGFT
Explanation:
ECGC Limited is a government enterprise that provides export credit insurance facilities to exporters and banks to protect them from the risk of non-payment by foreign buyers.
3. What is the primary tax benefit for a unit set up in a Special Economic Zone (SEZ) under the SEZ Act, 2005?
No specific tax benefits, only infrastructure support.
50% Income Tax exemption for the first 5 years.
Exemption only from GST, not Income Tax.
100% Income Tax exemption on export income for the first 5 years.
Explanation:
SEZ units enjoy 100% income tax exemption on export income for the first 5 years, 50% for the next 5 years, and 50% of the plowed-back export profit for the next 5 years (Section 10AA of Income Tax Act).
4. A country is said to have a "Trade Surplus" when:
Capital inflows exceed capital outflows.
Fiscal deficit is zero.
Imports of services exceed exports of services.
Exports of merchandise goods exceed imports of merchandise goods.
Explanation:
Trade Balance specifically refers to the difference between exports and imports of physical goods. If Exports > Imports, it is a Surplus.
5. The "Export Promotion Capital Goods" (EPCG) scheme allows import of capital goods at:
Double duty to protect local manufacturers
50% duty with no export obligation
Zero duty subject to export obligation
Standard duty rates with tax credits
Explanation:
The EPCG scheme allows exporters to import capital goods (machinery) at zero customs duty, provided they fulfill an export obligation equivalent to 6 times the duty saved within 6 years.