Professional Documents
Culture Documents
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EOU Scheme-Overview Scheme Units undertaking to export their entire production of goods and services may be set up under the Export Oriented Unit (EOU) Scheme EOUs can get a location of their choice Customs-bonded anywhere in CustomsIndia For setting up an EOU in Karnataka, Kerala, Lakshadweep or Maharashtra apply to Development Commissioner, EOUs can import without duties, all capital goods and raw materials for running the unit. unit. EOUs can procure these items from Indian sources also without excise duties and sales taxes ( in some cases) EOUs can sell upto 50% of FOB value of exports in the Indian market at 50% concessional duties New EOUs get Corporate Income Tax concessions till 2010
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Approval (called Letter of Permission (LOP)) for non-licensable nonmanufacturing activity is given locally by the Development Commissioner
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When any domestic vendor supply to EOU which will treat as Deemed Export for that Vendor, and can get the Duty Draw Back on the imported Raw Material Used In their final products and the Custom Duty paid on their imported item can be refunded to them, so by negotiation we can get this benefits for the amount Vendor will get. Draw back can calculate on actual custom duty paid or 1.3% of FOB value.
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Documentation Part
Purchase / Sale 1. Have to issue PO from EOU as the Excise Registration will be separate for EOU. 2. Before dispatch the goods from vendor end, we have to issue P C (Procurement Certificate) to vendor against which vendor will not charge Central Excise Duty (domestic purchase) in invoice raised to us. 3. Goods have to unload separately in EOU stores and maintain separate records for consumption, scrap, rejection etc. 4. Goods to be issued / consume against the EOU production only. 5. In case if there is no stock of any one components in EOU stores production can not confirm and dispatch can not be made in any circumstances. 6. While Sales invoice from EOU for Export there will be NO Excise Duty have to pay / debit. 7. If we have to issue raw material to any vendor for any Job Work, permission from the Development Commissioner have to obtain.
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Documentation Part -2
1. On monthly basis raw material consumption report have to submit to Development Commissioner in which item wise consumption, rejection, scrap have to declare. In case any gap we have to pay the duty to Government in cash equal to duty forgone. 2. Import and Export against Green Card The custom authorities will not inspect the container for Green Card holder.
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Final Pending
1. Require to purchase imported capital goods of $ 8,72,000 (INR 4.2 Crore. 2. MPCB Clearance 3. LUT with C.Excise Authority 4. Pollution Control clearance. 5. Excise Registration
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