Dear Sir,
what is the rate of duty applicable and payable by a firm opting for purchase of capital goods with indigenous content under EPCG scheme. This is done by issuing invalidation licence to the manufacturer .
Please advise
Mushtaq
MUSHTAQ HASAN (PROPRIETOR) (25 Points)
19 May 2011Dear Sir,
what is the rate of duty applicable and payable by a firm opting for purchase of capital goods with indigenous content under EPCG scheme. This is done by issuing invalidation licence to the manufacturer .
Please advise
Mushtaq
CS Bijoy
(Expert)
(6394 Points)
Replied 01 June 2011
The scheme allows import of capital goods for pre production, production and post production at 5% Customs duty subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under EPCG scheme to be fulfilled over a period of 8 years reckoned from the date of issuance of licence.
However, in respect of EPCG licences with a CIF value of Rs.100 crore or more, the same export obligation shall be required to be fulfilled over a period of 12 years. The capital goods shall include spares, jigs, fixtures, dies and moulds.
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