An EOU can pay in Foreign Currency to another EOU on the procurement. IN other words EOU can bill in FC to another EOU (pre GST).
Under the GST, EOU is treated at par with DTA. In that case can an EOU bill to another EOU in FC or in other words the settlement of the invoice by one EOU to another in FC.
Expert views solicited.
Regards
S.Ramaswamy
EOUs Can Continue Billing Each Other in Foreign Currency for Inter-Unit Transfers Under GST, BCD Exemption Remains A discussion was initiated regarding the inter-unit transfer of goods between Export Oriented Units (EOUs) under the GST regime. The query focused on whether EOUs can bill each other in foreign currency, as was possible before GST, given that EOUs are now treated similarly to Domestic Tariff Areas (DTA) under GST. An expert responded, clarifying that while EOUs are no longer customs bonded warehouses and GST exemptions have changed, the Basic Customs Duty (BCD) exemption for inter-unit transfers remains. Therefore, the billing pattern can continue as it was pre-GST, with only GST payable. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
