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What is lut?

shailesh Bhoir (Student Others) (24 Points)

27 July 2014

Sir,

Kindly brief the LUT & its brief procedure.

Regards,

Shailesh Bhoir

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Venkatanarayana GM (Partner associate at Hiregange & Associates) (1279 Points)
Replied 23 August 2014

LUT means Letter of Under Taking.

Meaning:- Its an bond undertaken by the assessee with central government in case of exports.

as per 41/2001 Central Excise (NT) it has to be executed with AC/DC for exports, saying that he is liable to be excise duty in case if he contravenue any rules under excise.

Thanks

Venkat

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Sunil Kumar G (AGM Taxation) (373 Points)
Replied 03 September 2014

The Letter of Undertaking is to be furnished in the Form UT-1 specified in Annexure-15 (See Part 7) to Notification No. 42/2001-Central Excise (N.T.), supra. Any manufacturer, who is an assessee under Central Excise Rules, 2002, shall furnish a Letter of Undertaking only to the Deputy/Assistant Commissioner of Central Excise having jurisdiction over his factory from which he intends to export. The Letter of Undertaking should not be furnished to the Maritime Commissioner or any other officer authorized by the Board. A 'Letter of Undertaking' shall be valid for twelve calendar months provided the exporter complies with the conditions of the Letter of Undertaking, especially the procedure for 'acceptance of proof of export' under this instruction. In case of persistent defaults or non-compliance causing threat to revenue, the manufacturer-exporter may be asked to furnish bond with security/surety. For the sake of clarification, it is mentioned that this Letter of Undertaking should not be taken for each consignment of export.

A 'Letter of Undertaking' shall be valid for twelve calendar months provided the exporter complies with the conditions of the Letter of Undertaking, especially the procedure for 'acceptance of proof of export' under this instruction. In case of persistent defaults or non-compliance causing threat to revenue, the manufacturer-exporter may be asked to furnish bond with security/surety. For the sake of clarification, it is mentioned that this Letter of Undertaking should not be taken for each consignment of export.he Letter of Undertaking is to be furnished in the Form UT-1 specified in Annexure-15 (See Part 7) to Notification No. 42/2001-Central Excise (N.T.), supra. Any manufacturer, who is an assessee under Central Excise Rules, 2002, shall furnish a Letter of Undertaking only to the Deputy/Assistant Commissioner of Central Excise having jurisdiction over his factory from which he intends to export. The Letter of Undertaking should not be furnished to the Maritime Commissioner or any other officer authorized by the Board. A 'Letter of Undertaking' shall be valid for twelve calendar months provided the exporter complies with the conditions of the Letter of Undertaking, especially the procedure for 'acceptance of proof of export' under this instruction. In case of persistent defaults or non-compliance causing threat to revenue, the manufacturer-exporter may be asked to furnish bond with security/surety. For the sake of clarification, it is mentioned that this Letter of Undertaking should not be taken for each consignment of export.

more details https://www.finact.in/lut-excise.H T M L click link