MEIS and SEIS - clarification required

[SARAVANAN RENGACHARY]

Dear Expert,

1. Are EOUs allowed to avail MEIS benefit ?. Note: EOUs are availing tax benefits i.e. Custom Duty exemption as per notification 52/2003.

2. Can Scrips be used for the payment of BCD, SW Cess, IGST etc.,

Please clarify.

regards

saravanan.

[YAGAY and SUN]

Restricted List

•EOUs/EHTPs/BTPs/STPs availing Direct Tax benefits / exemption

•SEZ/EOU/EHTP/BTP/FTWZ products exported through DTA units

Scrips cannot be used for SW Cess and IGST Payments

[DR.MARIAPPAN GOVINDARAJAN]

I can't understand the second point Yagay & Son. Can you clear it?

AI Summary

MEIS eligibility: restricted status for certain export units; scrips cannot be used to pay cess or IGST.
Export-oriented units availing direct tax benefits (EOU, EHTP, BTP, STP) are treated as restricted for MEIS/SEIS; exports from SEZ/EOU/EHTP/BTP/FTWZ routed through DTA units are similarly restricted. Incentive scrips cannot be used to pay social welfare cess or IGST, though queries included whether scrips could be applied to basic customs duty, social welfare cess and IGST.