Tax refund benefits relating to domestic transactions, considered as deemed exports, will now be processed electronically, the government said today.

The Directorate General of Foreign Trade (DGFT), under the Commerce Ministry, has asked its regional authorities to disburse Deemed Export Drawback claims as well as terminal excise duty online.

The move would help in making instant payment to exporters.

According to a trade expert, "At present, under the Deemed Export Drawback, there is a time lag of 15 days from the approval of the claim and its credit in the suppliers account."

He, however, said that there is also a fund crunch for claiming reimbursement for Deemed Export Drawback. During 2010-11, the government allocated Rs 15,270 crore for the drawback scheme.

The exporters are demanding an increase in allocation by 40 per cent year-on-year in the forthcoming Budget.