Kaptommy (owner ) (39 Points)
20 February 2010hi !
I just need some clarification about the purpose of this account "Exchange Earner's Foreign Currency (EEFC) Account".
1. what benifits does this account serve to an exporter other than depositing his forex earnings in this account.
2. Does this account provides any tax benifits ?
3. Is the forex earnings deposited into this EEFC account 100 % tax free ?
I would be happy if anyone can answer the above 3 questions.
Thank you .
RAMESH KUMAR VERMA
( CS PURSUING )
(43853 Points)
Replied 22 February 2010
MR. KAPTOMMY,
REPLY OF YOUR QUERIES, AFTER ISSUANCE THE EXPORTER IMPORTER CODE (IEC) THE IMPORTER & EXPORTER IS MANDATORY TO OPEN THE EEFC ACCOUNT.
AND WE CAN AVAIL BENEFIT DEPB, DRAWBACK, ADVANCE LICENCE, EPCG AND OTHER BENEFITS PROVIDIED BY THE GOVERNMENT OF
SUPPOSE,
IF WE EXPORT THE GOODS IN 40000 USD, AND IF WE ARE REGISTERED IN EXPORT CREDIT GUARANTEE CORPORATION (ECGC) AND THE BUYER DOES INSOLVENT, THE 80% FOREIGN CURRENCY WILL BE CLAIM AND DELIVER BY ECGC.
BESIDES IT, WHEN BUYER SEND10% (FOREIGN CURRENCY) IN REDUCTION AND BANK DEDUCT THE FOREIGN CURRENCY FROM INVOICE VALUE THEN NOT ANOTHER CHARGES WILL BE DEDUCT REFER TO THE CIRCULAR NO. 12, (A.P. DIR DERIES)) DTD. SEPTEMBER 2000
QUERY NO.2:-
REPLY:-
IF THE EXPORT UNIT IS 100% EOU, SEZ, EHTP/STP, OTHERWISE NOT.
QUERY NO.3:-
MANDATORY, REFER TO REPLY NO.2
ramesh.arti @ yahoo.co.in
RAMESH KUMAR VERMA
( CS PURSUING )
(43853 Points)
Replied 22 February 2010
MR. KAPTOMMY,
REPLY OF YOUR QUERIES, AFTER ISSUANCE THE EXPORTER IMPORTER CODE (IEC) THE IMPORTER & EXPORTER IS MANDATORY TO OPEN THE EEFC ACCOUNT.
AND WE CAN AVAIL BENEFIT DEPB, DRAWBACK, ADVANCE LICENCE, EPCG AND OTHER BENEFITS PROVIDIED BY THE GOVERNMENT OF
SUPPOSE,
IF WE EXPORT THE GOODS IN 40000 USD, AND IF WE ARE REGISTERED IN EXPORT CREDIT GUARANTEE CORPORATION (ECGC) AND THE BUYER DOES INSOLVENT, THE 80% FOREIGN CURRENCY WILL BE CLAIM AND DELIVER BY ECGC.
BESIDES IT, WHEN BUYER SEND10% (FOREIGN CURRENCY) IN REDUCTION AND BANK DEDUCT THE FOREIGN CURRENCY FROM INVOICE VALUE THEN NOT ANOTHER CHARGES WILL BE DEDUCT REFER TO THE CIRCULAR NO. 12, (A.P. DIR DERIES)) DTD. SEPTEMBER 2000
QUERY NO.2:-
REPLY:-
IF THE EXPORT UNIT IS 100% EOU, SEZ, EHTP/STP, OTHERWISE NOT.
QUERY NO.3:-
MANDATORY, REFER TO REPLY NO.2
ramesh.arti @ yahoo.co.in
Kaptommy
(owner )
(39 Points)
Replied 26 February 2010
Can u pls explain one thing .. that suppose i open my company a proprietorsip firm in STPI (software & technology park of india ) on 15th march 2010. and my profit for the year 1 april 2010 to 31st march 2011 is Rs 1 crore. what is my tax incidence. can i keep 100 % of this profit ? or if i need to pay any tax then how ill it be computed or what type of tax will i b required to pay ?
Thank you
CAclubindia
