EXPORT OBLIGATION

[MANISH PARMAR]

Dear experts,

Para No 5.1(e) of FTP 2015-20

(e) In case Integrated Tax and Compensation Cess are paid in cash on imports under EPCG, incidence of the said Integrated Tax and Compensation Cess would not be taken for computation of net duty saved provided Input Tax Credit is not availed.

As per the above Para No 5.1(e) of FTP 2015-20.

I will import machinery against EPCG licence and

(1) In case Integrated Tax and Compensation Cess are paid in cash.

(2) Input Tax Credit is availed.

Q-1-What is Export Obligation ?

Q-2 6 times of Customs duty +Social Welfare Surcharge +integrated Tax + Compensation Cess

Q-3 6 times of Customs duty +Social Welfare Surcharge

Dear all expert ,

please suggest and kindly share with us reference

Manish Parmar

AI Summary

Clarification on EPCG Scheme: Integrated Tax and Compensation Cess Exclusion in Duty Saved Calculation Under Para 5.1(e) of FTP 2015-20 A participant inquired about export obligations under the EPCG scheme, referencing Para 5.1(e) of the FTP 2015-20. The query involved whether Integrated Tax and Compensation Cess paid in cash should be included in the net duty saved calculation if Input Tax Credit is availed. Responses clarified that if these taxes are paid in cash, they are not included in the duty saved computation, provided no Input Tax Credit is availed. The export obligation is six times the duties saved, to be fulfilled within six years. Additionally, fulfilling the Average Export Obligation is required.