28 January 2014
Validity of UT-1 is 1 year from the issuance of letter of undertaking. After 1 year you need to renew for export without payment of duty.
03 August 2024
Under the Central Excise Law in India, an LUT (Letter of Undertaking) is a document that exporters use to export goods or services without paying Central Excise duty. The LUT is valid for a certain period and needs to be renewed periodically. The renewal process ensures that the exporter continues to meet the conditions laid down under the law.
### **LUT Renewal Procedure**
1. **Application Submission**: - The renewal application must be submitted to the jurisdictional Central Excise authority. - The application should be filed before the expiry of the current LUT to avoid any disruption in the export process.
2. **Documentation**: - Provide a copy of the existing LUT. - Attach proof of compliance with the conditions of the existing LUT, such as export documents, proof of payment of taxes, etc. - Include any other documents as required by the local Central Excise department.
3. **Verification**: - The Central Excise authority will verify the application and the supporting documents. - They may request additional information or clarification if needed.
4. **Issuance of Renewal**: - Upon successful verification, the LUT will be renewed, and a new LUT will be issued for the next period.
### **Format of the LUT Renewal Letter**
Here is a format you can use for applying for LUT renewal:
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**[Your Company Letterhead]**
**Date: [DD/MM/YYYY]**
**To,**
**The Superintendent of Central Excise**, **[Name of the Department]**, **[Office Address]**.
**Subject: Application for Renewal of Letter of Undertaking (LUT)**
**Dear Sir/Madam,**
We, [Your Company Name], having our registered office at [Your Address], are a registered exporter under the Central Excise Act, 1944. We are writing to request the renewal of our Letter of Undertaking (LUT) which is due to expire on [Date of Expiry].
**Details of Existing LUT:**
- **LUT Number:** [Existing LUT Number] - **Date of Issue:** [Date of Issue] - **Period of Validity:** [Validity Period]
We wish to inform you that we have complied with all the conditions laid down under the LUT. We have attached the following documents for your reference:
1. A copy of the existing LUT. 2. Proof of compliance with the conditions of the LUT (e.g., export invoices, proof of payment of taxes, etc.). 3. [Any other documents required by the Central Excise authority].
We request you to kindly process our application for the renewal of the LUT and issue us a new LUT for the forthcoming period.
Thank you for your prompt attention to this matter. We look forward to your favorable response.
**Yours faithfully,**
**[Your Name]** **[Your Designation]** **[Your Contact Information]** **[Your Company Name]**
---
**Attachments:**
1. Copy of Existing LUT 2. Proof of Compliance 3. [Any other documents]
### **Important Tips**
- **Check Local Requirements**: Different states may have specific requirements or additional documents needed for the LUT renewal. - **Timely Submission**: Ensure that you apply for renewal well before the current LUT expires to avoid any disruption in your export activities. - **Consult Professionals**: It’s advisable to consult with a tax consultant or legal advisor to ensure that all requirements are met and the application is correctly filled.
This format should help you draft a comprehensive and effective LUT renewal application.
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