Eou exemption

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Dhanyakumar Jain (Querist)
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25 October 2013 X ltd has identified a plot of barren land in India for constructing a Laboratory with an intention to export 100% of its research services and thus avail an EOU Status. For the purpose of construction of research lab, X ltd will import capital goods (which includes electrical items, HVAC and other capital items). X ltd will place the import order for purchase of these capital items immediately with construction in progress. Can X ltd avail EOU benefits for the purchase of these capital goods? What documentary procedure will it require to follow?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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09 November 2013 after approval and got the LOP is admissible.

Application & Approvals 6.7

(a) Applications for setting up of units under EOU scheme other than proposals for setting up of units in the services sector (except R&D , software and IT enabled services, or any other service activity as may be delegated by the BOA), shall be approved or rejected by the Units Approval Committee within 15 days as per the criteria indicated in Handbook (Vol-I).

(b) In other cases, approval may be granted by the Board of Approval (BOA) set up for this purpose as indicated in the Handbook (Vol-I) (c) Proposals for setting up EOU requiring industrial licence may be granted approval by the Development Commissioner after clearance of the proposal by the Board of Approval and Department of Industrial Policy and Promotion within 45 days.

more info:

http://www.csez.com/eou/html/e1000frm.htm