Sunil (Sr Accounts) (28 Points)
06 June 2012Dear Sir
Being a Trader (Pvt Ltd) how to do Excise Sales to the 100% EOU-Bonded Area customers ? If EOU company prides exemption certificate which are taxes we should not charge and if he didn't provide any exemption letter then what are the taxes we need to charge.
Is excise sales invoice is going to differ for 100% EOU customers ? or it will be notmal excise sales invoice ?
Thanks
Sunil Mahendrakar
Sunil Kumar G
(AGM Taxation)
(373 Points)
Replied 14 June 2012
Supplies of goods manufactured in India from Domestic Tariff Area (DTA) to EOUs/STPs/EHTPs/BTPs are regarded as ‘deemed export’ and are eligible for the deemed export benefits specified under Para 8.3 of Foreign Trade Policy The goods specified in the annexures to notification 22/2003-CE dated 31.03.2003 read with para 6.6.1 of HBP are allowed to be procured without payment of duty against CT-3 form and following ARE-3 procedure. Goods received under ARE-3 are verified and certified by the jurisdictional Customs /Central Excise officer in terms of the Board’s circular No. 851/9/2007-CX dated 03.05.2007 and 19/2007-Cus dated 03.05.2007 for the units under self bonding procedure. On many occasion, however, EOUs procure duty paid/exempted/non-excisable goods.
An EOU/STP/EHTP/BTP unit seeking endorsement of an invoice from Customs/Central Excise officer for such supplies shall, within one working day of arrival of goods, file intimation along with duplicate copy of invoice to the Superintendent-in-charge of the unit. On arrival of the goods at the premises of the EOU, the authorized person of the unit shall verify the number/quantity/weight/descripttion/value/duty paid etc. with the particulars mentioned in the invoice. The authorized person of the unit shall make entry in the account/register containing information relating to details of invoice, date of receipt, descripttion of goods including marks and number, quantity, value, rate and amount of duty and shall affix his/her signature. The unit is required to keep accounts of these goods for its consumption in the manufacture of goods for exports and DTA clearances, removal of these goods as such and closing balance. The Superintendent-in-charge shall depute a bond officer to examine the goods on the same day of receipt of intimation of arrival of goods. The bond officer shall conduct physical verification of the goods within one working day of receipt of intimation by the Superintendent-in-charge. The bond officer shall countersign entry in the account/register for the goods found to be eligible for procurement by the EOU in terms of notification No. 22/2003-CE read with para 6.6.1 of HBP. The bond officer shall submit a report to the Superintendent-in-charge who shall make an endorsement on the copy of the invoice as a proof of supply, its quantity and date of such receipt. A photo copy of this invoice will be kept in the Range office for records.
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