A company has a 100% EOU under STPI scheme and had imported furniture and equipment free of customs duty under the STP scheme. For the same it had to furnish a bank guarantee to the customs. The bank guarantee is issued by the bank on a collateral of a fixed deposit maintained by the company with the Bank. The Company wants to free this locked funds. It has met its obligation of earning net positive forex. I understand tah unlike EPCG scheme, wherein just a surrender of teh liecense is required, the unit has to totally opt out of the STP scheme.
1. What are the consequences of opting out of a STP scheme with regards to Income Tax and Customs Duty?
2. Is the deduction under 10 B still available, or will it continue in the DTC regime ?
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