Deemed Importer???

This query is : Resolved

Guest

Guest (Querist)

20 February 2010 Hi... We know about the deemed exporter.. But is there any term called deemed importer??

Let me take an example.. If a 100% EOU clears goods in DTA is called deemed exporter.. If in such DTA, the EOU sells the goods to manufacturer.. Can dat manufacturer be called as deemed importer?
Also can he get cenvat credit, CVD,Spl CVD etc.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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22 February 2010 sir,
please find enclosed COMPARATIVE CHART AMONG S.E.Z.' S , EOU'S AND GENERAL UNITS

S.NO. BENEFITS SPECIAL ECONOMIC ZONE (SEZ) UNIT EXPORT ORIENTED UNITS(EOU) GENERAL UNITS
1 INCOME TAX FOR SEZ UNITS (OTHER THAN TRADING UNIT) 100% INCOME TAX IS EXEMPTION FOR 5 YEAR , 50% FOR NEXT 5 YEAR AND 50% EXEMPTION ON PROFIT INVESTED FOR FURTHER NEXT 5 YEARS. 100% INCOME TAX IS EXEMPTED UP TO 31.03.2011 as per SECTION 10A AND 10B OF INCOME TAX . FULL INCOME TAX IS PAYBLE.
2 CONSTRUCTION MATERIAL GOODS FOR INFRASTRUCTURE DEVELOPMENT i.e CONSTRUCATION MATERIAL ALLOWED BE IMPORTING / PROCURING INDIGENOUSLY DUTY FREE. GOODS FOR INFRASTRUCTURE DEVELOPMENT i.e CONSTRUCATION MATERIAL NOT ALLOWED BE IMPORTING / PROCURING INDIGENOUSLY DUTY FREE. FULL EXCISE / CUSTOM DUTY IS PAYBLE.
3 SERVICE TAX SEZ UNITS / DEVELOPER EXEMPTED FROM PAYMENT OF SERVICE TAX. EOU UNITS NOT EXEMPTED FROM PAYMENT OF SERVICE TAX HOWEVER CENVAT CREDIT FACILITY IS ALLOWED FOR SERVICE TAX PAID & SAD & EDUCATION CESS ALSO EXEMPTED . NO EXEMPTION
4 CENTRAL SALES TAX CENTRAL SALES TAX IS EXEMPTED ON THE GOODS PROCURED INDIGENOUSLY. NO CST EXEMPTION HOWEVER CST REIMBUTSEMENT TO BE CLAIMED FROM JURISDTIONAL DEVELOPMENT COMMISSIOENR and in case OF DELAY ON THE CONCERNED AUTHORITY IS LIABILE TO PAY 6% INTEREST IN THE APPROVED 30 DAYS . NO EXEEEEMPTION
5 DTA SALE DTA (Domestic Tariff Area ) Sale ALLOWED ON PAYMENT OF FULL CUSTOM DUTY AS APPLICABLE ON IMPORTED GOODS. LIMITED DTA (Domestic Tariff Area ) Sale up to 90% of FOB VALUE FOE EXPORTS PERMITTED ON PAYMENT OF CONCESSIONAL RATE OF DUTY. DTA SALE IS PERMITTED.
6 TRADING UNIT Trade Unit are allowed to be SETUP IN SEZ. Trade Unit are allowed to be SETUP IN SEZ. TRADING IS ALLOWED.
7 DOMESTIC PROCUREMENT SUPPLY FROM DTA TO SEZ CONSIDERED AS physical exports. SUPPLY FROM DTA TO EOU CONSIDERED AS DEEMED exports. ***********
8 BENEFIT to DTA SUPPLIER for SUPPLIES FROM DTA, BENEFIT OF DEPB / DFRC/ADVANCE LICENCE AVAILABLE . for SUPPLIES FROM DTA, BENEFIT OF DEEMED EXPORTS DRAWBACK/ DFRC/ ADVANCE LICENCE /EPCG LICENCE/ REFUND OF Terminal excise DUTY AVAILABLE. NO BENEFIT
9 BENEFIT to DTA SUPPLIER No Cost Recovery Charges Recoverable for the custom staff Deputed during office hours.Exculisive customs staff deployed in the SEZ for handling customs work. Cost Recovery Charges Recoverable or MOT (merchant overtime) for the custom staff Even during office hours.NO Exculisive customs / CENTRAL EXCISE staff for handling custom / central excise work releating the unit. NO BENEFIT
10 INVESTMENT REQUIREMENT No minuimum Statuary investment limit prescribed. Minimum investment limit of one or more in plant and machinery required except certain specified sectors such as No minuimum Statuary investment limit prescribed.
11 Export Incentive ADVANCE LICENCE / EPCG LICENCE /DEEMED EXPORTS/TERMINAL EXICSE DUTY (TED) DRAWBACK IS ELGIBLE. No export incentive DEPB/DRAWBACK/FPS/FMS/VKGUY/MFLPS etc. are available.

I WANTED TO INFORM YOU THAT IF ANY 100% EOU WANTED TO PURCHASED ANY GOODS FROM EOU, THE BUYER MAY AVAIL DRAWBACK BENEFIT IF THEIR ITEM DEEMED FIT AS PER IMPORT ITEM FALLS ON SCHEDULE OF DRAWBACK.

for more information u can email me :

ramesh.arti@yahoo.co.in