100% EOU
This query is : Resolved
16 July 2009
Dear All,
I would like to know the requirements to set up an 100% EOU Unit, whether the unit can sell within India as well, whether it can do trading activity i.e. import and export and sometimes purchase and sell in DTA as well and what are the tax compliances for an EOU unit.
Please reply at your earliest.
I would like to know the requirements to set up an 100% EOU Unit, whether the unit can sell within India as well, whether it can do trading activity i.e. import and export and sometimes purchase and sell in DTA as well and what are the tax compliances for an EOU unit.
Please reply at your earliest.
Vishnu Saboo
(Expert)
24 July 2009
Yes Eou can sell material in DTA as per Law i.e. to extent of % it's FOB value of Export.
in case of sale tax, there is no exmption the only advantage is that EOU can take credit of CST paid and can claim of refund the same, simillarely in VAT.
as far as Excise duty & Custom duty these are exempted in Case of Import and Export.
When EOU is procuring some material from domestic market, it can issue form CT-3 and Excise duty will be "Nil" for EOU.
in case of sale duty structure for EOU is as per GE-24 of 23/2002 CE.
in case of sale tax, there is no exmption the only advantage is that EOU can take credit of CST paid and can claim of refund the same, simillarely in VAT.
as far as Excise duty & Custom duty these are exempted in Case of Import and Export.
When EOU is procuring some material from domestic market, it can issue form CT-3 and Excise duty will be "Nil" for EOU.
in case of sale duty structure for EOU is as per GE-24 of 23/2002 CE.
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