Our organisation's business is Sales & Service of Airconditioner in maharashtra & now decided to Export sales to Srilanka, our Export value is more than 100 Lacs, please tell me if there is any other way to get Excise Exemption.
13 July 2014
DEAR SIR, VALUE BASED S.S.I. EXEMPTION IS UP TO 150 LACS FOR DOMESTIC SALE OF MANUFACTURED GOODS ONLY. EXPORT SALE IS FULLY EXEMPTED AND IT IS NOT CONSIDERED FOR COMPUTATION OF S.S.I. EXEMPTION OF 150 LACS, AS PER NOTIFICATION NO. 8/2003-CE DTD. 01.03.2003. THANKS. R.K. GARG
21 July 2024
If your organization is engaged in the sales and service of air conditioners in Maharashtra and is now planning to export to Sri Lanka, you might be exploring options for excise exemption. Here are some considerations:
1. **Export Oriented Unit (EOU):** - You can set up an Export Oriented Unit (EOU) or an Electronic Hardware Technology Park (EHTP) or Software Technology Park (STP) unit. Units registered as EOU/EHTP/STP are eligible for excise duty exemption on goods manufactured and used for export purposes. - Under the EOU scheme, you can procure goods without payment of duty for manufacture, processing, production, and export. - You need to apply to the Development Commissioner (DC) of the respective Special Economic Zone (SEZ) or Export Promotion Council (EPC) for approval and registration.
2. **Advance Authorization Scheme (AA):** - Under the Advance Authorization Scheme, you can import inputs without payment of duty, subject to an export obligation equivalent to a certain multiple of the duty saved. - This scheme allows duty-free imports of raw materials, components, etc., which are used in the manufacturing of export goods. - You need to obtain an Advance Authorization from the Directorate General of Foreign Trade (DGFT) before importing goods duty-free.
3. **Duty Drawback:** - Duty Drawback is a refund of duties paid on imported or domestically produced materials used in the manufacture of goods exported. - You can claim Duty Drawback under Section 75 of the Customs Act, 1962 for customs duties paid on imported goods used in the manufacture of exported goods. - The drawback rates are notified by the government periodically and are based on the standard input-output norms.
4. **Export Promotion Capital Goods (EPCG) Scheme:** - Under the EPCG Scheme, you can import capital goods at concessional customs duty rates for enhancing export competitiveness. - You need to fulfill an export obligation equivalent to 6 times the duty saved on the capital goods imported under the scheme, to be fulfilled over a period of 6 years.
5. **GST Refund for Export of Goods:** - Under GST, exports are considered as zero-rated supplies, meaning no GST is applicable on export goods or services. - You can claim a refund of the input tax credit (ITC) accumulated on inputs and input services used in relation to such exports.
Given your sales value is more than 7 crores, and if you're exploring excise exemptions for export purposes, setting up as an EOU or utilizing schemes like Advance Authorization or Duty Drawback could be beneficial. It's advisable to consult with a tax advisor or a customs consultant who can provide specific guidance tailored to your business requirements and ensure compliance with applicable regulations.
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