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

MEIS eligibility restricted: supplies from DTA units to SEZ units barred, preventing duty credit scrip entitlement. Paragraph 3.06 of the Foreign Trade Policy excludes supplies made from DTA units to SEZ units and exports by EOUs/EHTPs/BTPs/STPs availing direct tax benefits from entitlement to Duty Credit Scrips under MEIS; where a DTA unit manufactures for an SEZ and final remittance is received by the SEZ, that configuration falls within the FTP exclusion and is not eligible for MEIS duty credit scrips.