EOU Exit - after De-bonding Materials transfer

[SNEHAL SHAH]

Dear sir,

We have apply application to DC for de-bonding of EOU unit .

We have received NOC from Excise authority for Capital Goods & RM,SFG & FG .

Now question is that can I sale or transfer Capital Goods , RM ,SFG after full duty payment at the time of de-bonding or fulfillment of Export Obligation .

Please suggest and advice to us .

Thanks and Regards,

SN

[Mahir S]

Snehal ji,

Raw materials, semi-finished and finished goods including containers suitable of repeated use lying in stock at the time of de-bonding can be cleared on payment of duty on their value at the time of import and at the rate of duty in force on the date of payment of such duty.

[KASTURI SETHI]

I fully agree with Sh.Mahir S.Sir.

[DR.MARIAPPAN GOVINDARAJAN]

I also agree.

[Ganeshan Kalyani]

If some items are old and to be scrapped out will in that also the duty need to paid while clearing from EOU.

[KASTURI SETHI]

Yes.Old and used capital goods have to be cleared on payment of duty to be calculated at depreciated value by straight line method.

[Ganeshan Kalyani]

Thanks Kasturi Sir.

[Mahir S]

Sir,

After exit from EOU, the unit becomes a normal manufacturing DTA unit.

Hence, all the excise rules , regulations and procedures prescribed there are thereafter applicable to the unit, including for the sale of old and scrapped items.

[Mahir S]

Respected Sirs,

Thanx for the appreciation,

[KASTURI SETHI]

Agreed with Sh.Mahir S. Sir. In a layman's language after exit, EOU loses its VIP status i.e. bonanza for all taxes and perks. thereafter, the unit is also called PBC (Production Based Control) unit.Just for information pl.

[SNEHAL SHAH]

Thanks to all of you for best support & guide .

Regards,

SNEHALSHAH

[Mahir S]

Thanx and all the best Snehal ji..

AI Summary

Duty payment on de-bonded EOU stock: clearance allowed on import-value duty; used capital goods taxed at depreciated value.
After de-bonding, stock including raw materials, semi-finished and finished goods and containers may be cleared on payment of duty computed on their import value at the rate in force on the date of payment; old or used capital goods must be cleared on duty calculated on depreciated value by straight-line method; the unit, on exit, becomes a DTA/PBC unit subject to all standard excise rules and procedures.