Charging of BCD on DTA sales by 100% EOU

[Ashwani Rustagi]

We are a 100% EOU and importing all of our raw-materials. We are doing partly DTA sales and charging BCD on DTA sales in the invoice based on the estimated consumption of raw-material used in the manufacture of product for DTA sales. The amount of BCD charged on DTA sales are deposited with Customs on monthly basis by manual Challan.

My Questions are:

1.Is it correct method of charging BCD separately in invoice on DTA sales?

2. Is the method of depositing custom on monthly basis by way on manual Challan is correct?

Please support your clarification with relevant provision/circular/notification.

[Nash Industries I Pvt Ltd]

BCD to be charged on the invoice.

Customs duty to be paid before clearance.

Regards

S.Ramaswamy

AI Summary

EOU Seeks Clarification on Charging BCD for DTA Sales; Advised to Invoice and Pay Duty Before Clearance. A 100% Export Oriented Unit (EOU) is inquiring about the proper procedure for charging Basic Customs Duty (BCD) on Domestic Tariff Area (DTA) sales. They currently charge BCD based on the estimated consumption of raw materials used in DTA products and deposit the duty monthly via manual Challan. They seek confirmation on whether this method is correct. A respondent advises that BCD should be charged on the invoice and customs duty must be paid before clearance.