Dear All,
We are in the process of De-bonding of our 100% EOU unit. On De-bonding is it required to pay duty for capital assets acquired, during the period under bonding, from DTA by paying Central Excise duty? Similarly on raw material stock which is purchased from DTA by paying applicable Excise Duty.
Regards,
SAKTHIVEL
Debonding 100% EOU: Duty Required on Duty-Free Capital Assets and Raw Materials from DTA During Bonding Period. A discussion on the de-bonding process of a 100% Export Oriented Unit (EOU) raised questions about the requirement to pay duty on capital assets and raw material stock acquired from the Domestic Tariff Area (DTA) during the bonding period. It was clarified that duty must be paid on these items, especially if they were initially procured duty-free through CT3 or Procurement Certificates. Proper accounting records are necessary to distinguish between duty-paid and duty-free assets. Additionally, there is a possibility of penalties for failing to meet export obligations. (AI Summary)
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