Credit - Debit procedure of CT-3 in a 100% EOU unit

[raj nadh]

Dear Experts,

Pls clarify the Credit - Debit procedure of CT-3 in a 100% EOU unit.

Anand

[raj nadh]

Dear Experts,

Pls clarify the Credit - Debit procedure of CT-3 in b-17 bond in a 100% EOU unit.

Anand

[PAWAN KUMAR]

Dear Sir,

As per my view, B-17 bond is executed in EOU for all the transaction i.e. import and export. On the basis of CT-3 certificate an EOU may procure the indigenous goods duty free from the domestic market. When the goods procured, debit the amount of duty as indicated in the invoice into bond-17 and credit the same if the goods are issued for use into manufacture of final products from the bonded store.

[YAGAY andSUN]

Dear Anand,

The EOU/EHTP/STP/BTP unit can procure indigenous material without payment of Central Excise Duty. They have to issue CT-3 certificate singed by excise authorities to the supplier. The manufacturer of the indigenous goods (i.e. Supplier) is required to follow procedure as per Rule 11 (for invoicing) and Rule 20 (warehousing) of Central Excise Rules.

B-17 Bond is all purpose bond covering liability both of Central Excise and Customs. The assesse should maintain running bond account of B-17. In the account, of duty payable on goods procured (imported under Bill of Entry or indigenous supply under CT-3) will be debited and correspondence duty will be credited when corresponding goods are exported or re-warehousing certificate will be issued after goods are warehoused.

This is for your kind information.

Regards

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

AI Summary

CT-3 certificate procedure enables duty-free procurement with B-17 bond accounting debits discharged on export or warehousing. An EOU may procure indigenous inputs duty-free by issuing a CT-3 certificate signed by excise authorities; suppliers must follow invoicing and warehousing procedures. The B-17 bond covers excise and customs liabilities and requires a running bond account where duties on procured goods are debited and credited when corresponding goods are exported or re-warehoused.