Refunds, Rebates, Exemptions and Remissions

Question 1

when is duty refunded?

Answer 1

damaged/stolen goods during voyage
damaged/stolen goods while subject to excise control
buyer has returned goods
duty paid in respect of illuminating kerosene/spirit used for manufacture of unexcisable goods
person who paid excise but hasn’t received payment from purchaser
overpaid tax

Question 2

period for application of refund for damaged/stolen goods?

Answer 2

12 months from date of payment of duty

Question 3

period for application of refund for seller who has not received payment from purchaser who becomes insolvent?

Answer 3

12 months from date purchaser became legally insolvent

Question 4

period for application of refund for seller who has not received payment from purchaser?

Answer 4

12 months after the lapse of 3 years from the date of sale

Question 5

what are the controls of refunds under the regulations?

Answer 5

inform commissioner of destruction/theft within 24 hours
retain for examination any residue/damaged portion of goods
returned goods to be re-exported within 12 months
spirits used to manufacture unexcisable goods to be purchased from a licensed distiller
illuminating kerosene must be purchased by oil marketer licensed by the regulator

Question 6

goods where rebates are granted?

Answer 6

manufacture of spirit
fortification of wines
repackaging of wines

Question 7

when is the offset of excise duty paid prohibited?

Answer 7

RM not used in the factory
RM used to manufacture exempt goods
RM used to manufacture goods under excise control

Question 8

which goods/services are exempted from excise duty?

Answer 8

goods in the second schedule of the act
exported goods
exported services
goods destroyed under KRA supervision before removal from factory
denatured spirits
goods lost/destroyed by accident in the course of removal from factory, in the factory, on board an aircraft/vessel prior to importation

Question 9

when is 80% remission granted?

Answer 9

beer made from sorghum, millet or cassava excluding barley grown in Ky

Question 10

pre-conditions for granting of the 80% remission?

Answer 10

tax compliant
valid excise licence
fully installed EGMS
beer to have at least 75% content of sorghum, millet, cassava excluding sugar and barley
pack beer in a pressurised container of at leasr 30L
sell beer at less than 100bob
meet regulatory requirements
comply with other conditions imposed by commissioner

Question 11

conditions for 90% remission?

Answer 11

meet the conditions for the 80% remission
invest at least 5B KES for 5 years from the date of commencement of manufacture
agreement between govt and manufacturer on specific commitments