Hi all!
One of our clients used to make exports with payment of tax after filing of LUT for F.Y. 20-21.Now the client wants to know if we can cancel our LUT and pay the taxes on it?
Can we still pay the taxes on exports even after being granted an LUT?
There is a lot of un-utilised ITC credit available.
Exporters Can Opt to Pay Taxes Even After Filing LUT for 2020-21; No Cancellation Required A client inquired about canceling their Letter of Undertaking (LUT) for exports and paying taxes instead, despite having filed an LUT for the fiscal year 2020-21. The responses clarified that it is possible to pay taxes on exports even after obtaining an LUT, as it is optional to supply goods for export with or without tax payment under LUT. The validity of an LUT covers the entire financial year, but if export conditions aren't met, the LUT can be temporarily withdrawn. No cancellation of the LUT is required to pay taxes on exports. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
