We are in process of setting up EOU. We are sure of achieving Positive NFEP. However we cannot achieve the requirement that DTA sales to be maximum 50% of FOB value of exports. Our DTA sales are going to be equal if not more than exports FOB value. Anyone have any experience or knowledge of what happens if this occurs. Even over a 5 year period we do not see the total DTA sales to be 50% of exports FOB, it will be more. Are there any penalties or we only have to pay more duty for DTA sales.
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EOU - Sales in DTA exceeding 50% of Exports
Replies (4)
i think you shud chk with the Articles of the co., does it provide so- This is from Audit point of view.
Regards legality, chk for the ceiling limit provided into bye-laws of regulations. It certainly doesnt provide for more than 50% DTA, and stands for revocation of EOU license.
Till 50% of DTA sale you have to pay concessional duties and after that you have to pay full duty provided you have achived positive NFE
| Originally posted by :H.B.Jesrani | ||
| " | We are in process of setting up EOU. We are sure of achieving Positive NFEP. However we cannot achieve the requirement that DTA sales to be maximum 50% of FOB value of exports. Our DTA sales are going to be equal if not more than exports FOB value. Anyone have any experience or knowledge of what happens if this occurs. Even over a 5 year period we do not see the total DTA sales to be 50% of exports FOB, it will be more. Are there any penalties or we only have to pay more duty for DTA sales. | " |
Dear Mr.Jesrani,
If you are exceeded the 50% sales of DTA entitlement you have to pay full duty subject to NFE positive, but the same time you can apply for advance DTA license for concessional duty with your respective (MEPZ/CSEZ/WSEZ/....). If they receommend your case to BOA by recommending valid reasons, the policy may be relaxed by the Policy Relaxation Committee (DGFT).
If you have any clarifications you may contact 9597625285- M.Aravinda Kumar
Ane one can help me?
We are 100% EOU, manufacturer and exporter of Toys, running more than 14 years.
Now, we got the DTA Sales permission from MEPZ for the FY 2014-15 (Period of Entitlement).
My question is Can we apply for DTA Sales Permission for the FY 2015-16 & 2016-17, right now?
Also , our one of the branch situated in chennai it is also 100% EOU, Just now completed one year (1st Sales made on May 2016).
Can we apply for DTA Sales permission, since it is just completed one year?
If so, What are all the procedures for getting DTA Sales permission from MEPZ for one year completed company.
Please...
P.SENTHIL KUMAR
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