Eou exemption

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Querist : Anonymous

Querist : Anonymous (Querist)

24 January 2012 Dear Expert,

Greeting the Day!!!!!

What are the exemptions provided to Export Oriented Units (EOU) under various Tax Heads??

Regards

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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24 January 2012 MORE INFORMATION READ MY POSTED FILE:

Querist : Anonymous

Querist : Anonymous (Querist)

24 January 2012 can u send me the link.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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24 January 2012 Some incentives given to EOUs

* No import licences are required by the EOU units and import of all industrial inputs exempt from customs duty.
* Supplies from the DTA to EOUs are regarded as deemed exports and are hence exempt from payment of excise duty which means that high quality inputs are available at lower costs.
* On fulfillment of certain conditions, EOUs are exempted from payment of corporate income tax for a block of 5 years in the first 8 years of operation. Export earnings continue to be exempt from tax even after the tax holiday is over.
* Industrial plots and standard design factories are available to EOUs at concessional rates.
* Single window clearance for EOU. For example, the State Government of Kerala as well of Karnataka has constituted single window clearance mechanisms such as District Single Window Clearance Board (in Kerala) and Karnataka Udyog Mitra (in Karnataka) for the purpose of speedy issue of various licences, clearances.
* Private bonded warehouses in the 7 EPZs can be set up for
o Import and sale of goods including in the DTA, subject to payment of applicable duties at the time of sale.
o Trading including re-export after repacking/labeling.
o Re-export after repair, reconditioning or re-engineering
* EOUs and EPZs are permitted to sub-contract part of their production processes for job work to units in the DTA on a case by case basis.
* Supplies to the DTA under international competitive bidding against payment in foreign exchange to other EOUs and EPZ units and against import licenses are considered towards fulfilment at the export obligation.
* The FOB value of exports of EOUs and EPZ units can be clubbed with that of parent companies located in the DTA for the purpose of obtaining a Trading or Export House status.
* EOUs and EPZ units may export goods through Trading and Export Houses or other EOU and EPZ Units.

READ LINK CAREFULLY:

https://www.caclubindia.com/share_files/comprative-incentive-among-sez-eou-and-general-unit--23721.asp

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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24 January 2012 #

# Fiscal Incentives available to 100% EOUs : Exemption from Customs and Central Exciuse duties on import/local procurement of Capital goods, raw materials, consumables, spares, packing material etc.
# Reiumbursement of Central Sales Tax (CST) on purchases made from Domestic Tariff Area (DTA)
# Corporate Tax Holiday upto 2010
# CENVAT credit on Service Tax paid
# Re-iumbursement of duty paid on fuels procured from domestic oil companies as per the rate of Drawback notified by the DGFT from time to time.

Querist : Anonymous

Querist : Anonymous (Querist)

24 January 2012 thanks alot..

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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24 January 2012 welcome in ca club india....

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