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Jacky Gupta (Employed)     12 July 2011

Excise Credit on removal of goods By EOU into DTA

Please provide me the detail of duties on which credit can be booked & how ?, when goods r removed by EOU to DTA.

Provide the amt of cenvat credit on the following illuistration :

AV  1000

BCD 10%

BED 8%




 3 Replies

CS Bijoy

CS Bijoy (Expert)     12 July 2011

Goods from EOU to DTA is considered to be import and here the duty of Custom is come and the duty is credited only after the clearance from the Custom for home consumtion or in case of Warehouse than when the goods cleared from warehouse for home consumption.

1 Like
CA,CS Mehul Bhanawat

CA,CS Mehul Bhanawat (Job)     12 July 2011

Rule 3(7)(a)of cenvat credit Rules 2004 applies to it.

cenvat Credit shall be computed as uder

1.a) the portion of the exise duty levied u/s 3(1) of custom tariff act 

 b) the additoinal duty of custos leviable u/s 3(5) of custom tariff act 

2. The EC and SHEC on exisable goods on the excise duty levied u/s 3 of central Excise Act 

Total Amount available as CENVAT credit [1(a)+1(b)+2]

CA Nitin Karmalkar

CA Nitin Karmalkar (Senior Associate)     24 October 2011

Dear Jacky,

The calculation of duty will be same as that of import. But EOU can avail DTA sale permission from Development Commisioner. The effect of this will be Custom duty rate will be reduced to half of applicable rate. In your case same will be 5%. You can take credit of CVD, SAD but not of Custom Duties. The EOU also mentions cenvat credit available on invoice.

You can contact me on 9822610852 for further clarification

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