Letter of Undertaking for export without tax: eligibility, running bond option, and bank guarantee guidance clarified. Clarifies that exporters may ship without payment of integrated tax by furnishing either a Letter of Undertaking or a bond under rule 96A; eligible exporters (status holders and those meeting inward remittance and prosecution criteria) may use LUTs executed in duplicate for a financial year, while others must furnish bonds on applicable stamp paper. Bonds may be running bonds covering estimated export tax liability and jurisdictional Commissioners may require or waive bank guarantees based on exporter track record, with guarantees normally capped as a percentage of the bond. Acceptance, validity, transitional filing, and administrative jurisdiction for LUTs/bonds are specified.
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Letter of Undertaking for export without tax: eligibility, running bond option, and bank guarantee guidance clarified.
Clarifies that exporters may ship without payment of integrated tax by furnishing either a Letter of Undertaking or a bond under rule 96A; eligible exporters (status holders and those meeting inward remittance and prosecution criteria) may use LUTs executed in duplicate for a financial year, while others must furnish bonds on applicable stamp paper. Bonds may be running bonds covering estimated export tax liability and jurisdictional Commissioners may require or waive bank guarantees based on exporter track record, with guarantees normally capped as a percentage of the bond. Acceptance, validity, transitional filing, and administrative jurisdiction for LUTs/bonds are specified.
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