Shortfall of annual average obligation in epcg

This query is : Resolved

Siddhi Nath Chaturvedi (Querist)
Follow

13 February 2014 We have completed our Export obligation but we have not achieved Annual Average Obligation in EPCG, and received the query from DGFT.

Please send us the for redemption the EPCG license if Annual Average Obligation not achieved.

Jyotindra Thakar

Jyotindra Thakar (Expert)
Follow

13 February 2014 Export obligation under EPCG is different than Export obligation under other duty exemption schemes. Under EPCG Scheme, export obligation is export over and above average export to be maintained by the company. For Example if before applying for EPCG licence, last three years everage export was Rs.100 and the same is mentioned in the EPCG licence as Average Export to be maintained by the Exporter, Export obligation will be equal to Total Export say Rs.120 minus average export to be maintained Rs.100 = Rs.20

Siddhi Nath Chaturvedi

Siddhi Nath Chaturvedi (Querist)
Follow

14 February 2014 Dear Sir,
We have completed Export Obligation as per License.

But we have not maintained Annual Export Obligation as fixed by DGFT.

Please tell me the process for redemption of the license, is any penalty will be applicable.

Upgrade to CAclubindia Pro. Subscribe Now!

Siddhi Nath Chaturvedi

Siddhi Nath Chaturvedi (Querist)
Follow

13 June 2014 Dear Experts,

Please reply.