Adv. S Sharma (Lawyer) (574 Points)
08 March 2008HI ALL
QUERY : - goods manufacture in India liable to excise duty nd goods manufacture in EOU liable to CUSTOM DUTY than what is the diff between them? duty have to be paid but why manufcturer prefer EOU ?
QUERY: - Is SEZ free from all duties, Taxes ?
regards,
Sachin
Ravi Jagetiya(CA Final)
(Articled assistant)
(191 Points)
Replied 17 March 2008
schin, it might be due to economical supply from them to procurer
since u know that SEZ/EOU/FTZ/STP units avails the profit exemption up to 10 years so there may be cost saving to procurer.
Otherwise those unit has to charge duty equivalent to that , leviable on the removal of identicle goods from any other units.
give me ur opinion also if u are not agreed with.
sunil
(excise incharge)
(56 Points)
Replied 22 July 2009
I am running a DTA company, i am making invoice for an EOU unit . This invoice is for the tool cost which occured for make a tool for that EOU unit. The tool will be handle by me and it will be in my premises. I am charging the tool cost only. Is excise duty applicable for this. Kindly clarify
Arun Kumar Singh
(GST Advocate)
(15220 Points)
Replied 23 July 2009
yes Mr. sunil, you will charge tool cost only.
Sanjay Dwivedi
(Advocate & Consultant)
(143 Points)
Replied 03 August 2009
Two queries have been clubbed in the same post.
1. Procurements of EOU (raw materials, consumables, fuels, etc.) are allowed duty free. Additionally benefits are available under Income Tax Act. The benefit of duty free procurements can be availed by a DTA manufacturer only by combining several schemes viz. EPCG, Advance Licence, notification 43/2001-CE.
2. As regards the second query: Actually, no duty is payable on the tool itself (since it is not being removed). However, cost of the tool is an expense for manufacture of the products (using that tool). Hence, tool cost has to be amortised and added to the value of the products that would be supplied. Since the supply is to an EOU, there will be no burden of duty at all. You need not pay any duty when the tool cost is recovered by you. However, work out the amortised cost of the tool per unit of the final product. In the invoices for the final product indicate this amortised cost (this is only for the purpose of calculation of assessable value).
sunil
(excise incharge)
(56 Points)
Replied 07 August 2009
Ok Thank you sir
Whether Excise duty for Tool Cost is applicable to DTA- DTA units.
Regards
Sunil
CAclubindia
