DTA sales by 100% EOU

[Asked by Guest]

What are the duties / taxes to be lieved, when an EOU unit sells to a domestic party.

[RadheyShyam Mangal]

The question can not be asked in short. It depends upon many points. However, considering the EOU unit uses both domestic as well imported ( including deemed imports) to manufacture its goods. The duty structure will be-

1. If sold under para 6.8(a),6.8(d),6.8(e),6.8(g) of FTP, the duty will be as per Condition No 2 of Notification No 23/2003 of CE i.e 50% BCD plus CVD plus SAD( when Sales is not paid).

2. If sold under para 6.8.(h) of FTP then full custom duties.

AI Summary

Duty liability on EOU domestic sales: reduced customs composition or full customs duty depending on FTP provision.
Duty liability on domestic sales by a 100% EOU depends on the FTP provision authorising the sale and the input origin; certain FTP-authorised disposals attract a reduced duty composition of Basic Customs Duty plus Countervailing Duty and Special Additional Duty (when sales are not under payment), whereas sales under other FTP provisions attract full customs duties.