The Indian finance ministry on Wednesday said that excise duty in cement and steel used in construction of new houses and temporary shelters in tsunami affected areas would be refunded. The refunds would be made only if the construction is undertaken by a non-government organisation, voluntary agency, private-public enterprise or rehabilitation organisation, trust or any agency approved by the concerned state or union territory government.
A department of revenue notification issued here today said manufacturers of the cement and steel will not be eligible for refund of excise duties and would therefore be required to pay duties at the time of clearance. The refund would be applicable only for construction carried out between April 1 and July 31, ’05. Further, the refund shall not exceed 6% of the cost of construction or 9,000 per house constructed, whichever is lower. Refund claim for the period April-June ’05 has to be filed by September 30.
