100% EOU Vs. Trading activity

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OP Shrestha (Querist)
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25 September 2008 We are a 100% Export Oriented Unit under EHTP scheme. We are into manufacaturing and export of transformer cores and our LOP also specify that. As we understand that under 100% EOU scheme, trading activities are not permissable. We plan to open a branch office under the same (present) name & style but not covered under 100% EOU scheme and carry out trading activity there - both existing unit and proposed branch unit will have common 'head office. Please advise if we can open a branch and do trading acvitity without availing EOU benifits ?

Regds/OP Shrestha

CH.LN.Sastry,MCom, LLB, M.Phil

CH.LN.Sastry,MCom, LLB, M.Phil (Expert)
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14 September 2009 Yes. You have to take a Dealer Excise Regn.

I suggest you that it is better for you to do a small manufacturing activity in your existing EOU. Apply to SEZ for including this New Product in your existing LOP. Or you give job work to some other DTA units. Then you will get all export benifits.

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