100% eou & trading

This query is : Resolved

Mansi (Querist)
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26 July 2016 Hello Experts,

B Pvt Ltd is proposed to be merged into A Pvt Ltd.
B Pvt. Ltd. is a Non EOU & A Pvt. Ltd. is a 100% EOU.
A Pvt. Ltd. proposes to take over entire business of the B Pvt. Ltd.
B Pvt. Ltd. is engaged into Manufacturing as well as Trading.
Can A Pvt Ltd (EOU) continue to undertake trading post merger?

Dr.RAMAKRISHNA. C

Dr.RAMAKRISHNA. C (Expert)
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01 August 2016 No. Export Oriented Units (EOU) export their entire production except permissible sales in Domestic Tariff Area.

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Mansi

Mansi (Querist)
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01 August 2016 Thank You sir,

But can there be a situation where

Post merger A Pvt Ltd is the over all company. In its gambit it has:-

i) location P as 100% EOU (as LOP has been obtained for location P) - it undertakes manufacturing.
ii) location Q is DTA Manufacturing Unit - Taken over from company B under merger. It will remain DTA unit post merger also.
iii) Over and above the two manufacturing unit A pvt ltd has also taken over trading business of B pvt ltd.
So the EOU status is location specific. Can this be possible? Like how reliance has under its gambit it has EOU, also refinery business, retail business, etc.

Await your feedback. Kindly guide.