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Deemed export

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hemant kaushik

37 Points Posted on 11 May 2020

i am a supplier to EOU. can i supply the goods on LUT/Bond without payment of duty. Kindly provide me some reference like act,rules,circular where it has been clarified that supplies to EOU will be only after payment of tax or without tax

Replies (3)

Quick Summary

This discussion clarifies whether suppliers to 100% Export Oriented Units (EOUs) can supply goods without paying duty using a Letter of Undertaking (LUT) or Bond. The consensus is that supplies to EOUs are considered 'deemed exports' and typically attract a tax rate of 0.1% under specific conditions, rather than being eligible for duty-free supply via LUT/Bond which is generally reserved for direct exports or supplies to SEZs.

sunil arora

55 Points Posted on 11 May 2020

Read Section 147 dealing with Deemed Export

hemant kaushik

37 Points Posted on 11 May 2020

Somewhere it is written that supplies to eou/sez cant be made on LUT. so any one has any govt notification or any section/rules for the authenticity of the same

sujith kumar dasa

banglore

988 Points Posted on 11 May 2020

No. Only export supplies and supply to SEZ can be made without payment of tax by submitting LUT. For supply to 100% EOU, tax @ 0.1% is applicable subject to satisfying the conditions for deemed supply.