20 November 2012
Sir, A Company has purchased a machinery under EPCG Scheme but still not installed. Now a new Company B is formed and it is going to purchase the Assets of A company. on enquiry it is being infomed that we should surrender the license and pay the duty amount with intrest and should come out of EPCG scheme
Is there any other method to transfer the EPCG license to the new company B since all the assets are purchased from A company. Kindly clarify and any other procedure to be followed.
1. IF B COMPANAY IS REALTED TO A , EITHER A SISTER CONCERN OR A SUPPORTING MANUFACTURER, THEN YOU CAN APPROACH DGFT AND GET B COMPANAY NAME ENDORSED IN THE EPCG LICENCE . IN THAT EVENT YOU CAN TRANSFER THE GOODS TO B COMPANY, AND TAKE A INSTALATION CERTIFICATE FROM THE EXCISE RANGE OFFICE OF B COMPANY. E.O IN SUCH CASE HAS TO BE FULLFILLED BY A COMPANY.
2. IF A AND B ARE NOT RELATED, THEN THE OPTION IS TO APPROACH DGFT AND SURRENDER THE LICENCE AND PAY CUSTOMS DUTY ALONG WITH INTEREST
CAclubindia
