MEIS Benefits

[Mohideen A]

When goods are manufactured and exported by a dta unit on behalf of an SEZ unit. Can the DTA Unit claim meis benefit, if the SEZ unit gives a declaration that it is not claiming MEIS under its name.

Here the catch is the DTA unit gets paid by the SEZ unit in foreign currecy and final remittance for the shipment to the foreign entity is received by the SEZ unit.

[YAGAY andSUN]

5. Export Categories/ Sectors not eligible for Duty Credit Scrip under MEIS (Ref: Paragraph 3.06 of FTP)

5.1 Para 3.06 of the Foreign Trade Policy specified the exports categories /sectors which are ineligible for Duty Credit Scrip entitlement under MEIS. The ineligible export categories and Sectors are as under:-

(i) EOUs / EHTPs / BTPs/ STPs who are availing direct tax benefits /exemption.

(ii) Supplies made from DTA units to SEZ units

[ASHOK PATRA]

Policy Circular No. 20/2015-2020 Dated: 22nd February, 2019

 

AI Summary

Can a Domestic Tariff Area unit claim MEIS benefits for exports on behalf of an SEZ? Paragraph 3.06 explored. A discussion on whether a Domestic Tariff Area (DTA) unit can claim MEIS benefits when manufacturing and exporting goods on behalf of a Special Economic Zone (SEZ) unit. The DTA unit receives payment in foreign currency from the SEZ unit, while the SEZ unit receives the final remittance from the foreign entity. Responses highlight that under Paragraph 3.06 of the Foreign Trade Policy, certain export categories, including supplies from DTA to SEZ units, are ineligible for MEIS benefits. Additionally, Policy Circular No. 20/2015-2020 addresses related issues.