CMA Final · Indirect Tax Laws and Practice · Duty Drawback
Gupta Traders paid import duty on a machine on 10 March 2024. Under section 74, within what period from the date of payment of duty must the goods be entered for export to qualify for drawback, without any extension?
The goods must be entered for export within two years from the date of payment of duty on importation under section 74(1)(b). The Board can extend this period on sufficient cause shown, but without extension the limit is two years.
- ASix months
- BOne year
- CTwo yearsCorrect
- DThree years
Explanation
Section 74(1)(b) requires the goods to be entered for export within two years from the date of payment of duty on importation. Here, that means on or before 10 March 2026. The Board may extend this on sufficient cause, but the base period is two years.
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