DTA Sales - 100% EOU

DTA Sale of Finished Products/ Rejects/ Waste/ Scrap/ Remnants and By-products

para 6.8 of foreign trade policy,

The entire production of EOU/EHTP/STP/BTP units shall be exported subject to the following:

(a) Units, other than gems and jewellery units, may sell goods upto 50% of FOB value of exports subject to fulfillment of positive NFE on payment of concessional duties. Within the entitlement of DTA sale, the unit may sell in DTA its products similar to the goods, which are exported or expected to be exported from the units. No DTA sale at concessional duty shall be permissible in respect of motor cars, alcoholic liquors, tea (except instant tea), pepper & pepper products, marble and such other items as may be notified from time to time. Such DTA sale shall also not be permissible to units engaged in the activities of packaging / labeling / segregation / refrigeration /compacting/ micronisation/ pulverization/ granulation/ conversion of monohydrate form of chemical to anhydrous form or vice-versa.

(In above (a) from third sentence to vice-versa. has been amended vide NTF. NO. 24/2005, DT. 31/08/2005)

for more information link is :-

https://dgftcom.nic.in/exim/2000/policy/chap-06.htm

another link is:-

https://121.241.246.157/customs/cs-manual/manual_22(b).htm

Dear Ramesh

Thanks for the reply.  So does it mean that

1) A 100% EOU (Software development and consultancy firm) need not collect central excise duty for its DTA Sales if it has got DTA Sales permission from STPI? 

 2) What if it does DTA Sales without  obtaining the DTA  Sales permission from STPI?

3) Should a software consultancy firm (100% EOU)  apply for DTA sales permission for doing Software consultancy servcices in India (It is pure consultancy services and service tax are being collected and remitted to central govt account).

Could you pls clarify

Thanks

Sreejith

How to calculate duty when the product is taxable under MRP valuation
 

When export sale is made at what rate i have to account in books. my client (EOU) is accounting as per the rate given by customs department for customs duty calculation.
 

sales are always done at contract value, when they have taken foreign order in convertible foreign exchange, they have to deliver goods and after conversion of forex, the result value is taken for assessable value. 

if you are supplier to EOU , you have to make invoice for assessable value as per agreement between buyer and seller for value to be paid.

Hello Experts,

I want to know :

1.Whether we can convert our Exporting unit (whose total sales is for EXPORT only) to 100 %EOU ?

2.Do we need to set up a fresh unit for EOU at other place with the same existing business name or with other name?

3.Can other business firm carried at the same EOU premises?

4.Can we sale in a domestic market –INDIA  our products in addition with export sales  with the same EOU unit or from other?

5.Does sale in domestic market amounts to Excise duty?

Regards.....Sangeet