EXPORT OF CKD KITS OF PCB ASSEMBLY / ELECTRONIC SUB ASSEMBLY

[Anil Gagneja]

We are  manufacturer  of PCB Assembly/Electronic Sub Assembly  (Mounting of Components on Bare PCB). 

Availing of Cenvat Credit on inputs, capital goods and input services.

Now we are interested to export the CKD kits of PCB Assembly/Electronic Sub Assembly.

Please give us the procedure/rules and regulations of Customs,  Central Excise and Service Tax under which we adopt the system.

[Guest]

As far as export is concerned, please check have you utilized EPCG license. If yes, then try to fulfill export obligation. Other wise you may check for DEPB rates for your items, then decide if you immediate export orders to utilize the benefits under this scheme, because this DEPB is valid Sept 2011 only. In case, if you are not in a position to export before Sept 2011 and if your products are not eligible for DEPB, then check Drawback rates for your products. The objective is how best you avail the export benefits.

As far as central excise and sales tax, let our other readers can explain better to you.

[YAGAY andSUN]

We do agree with the reply of Mr. Gangadhar. 

You can take rebate of central excise duties if you are exporting with payment of duty.  VAT will not be applicable on export sale.  Further, if service tax on input service had been paid for the purpose of manufacturing of goods intended for export then you can go through the refund mechanism for Service Tax.

 

AI Summary

Manufacturer Seeks Guidance on Exporting CKD Kits, EPCG License Utilization, and Navigating Tax Regulations, Including Drawbacks and Rebates A manufacturer of PCB Assembly/Electronic Sub Assembly seeks guidance on exporting CKD kits and the relevant customs, excise, and tax regulations. One response suggests checking the utilization of an EPCG license and fulfilling export obligations, or considering DEPB rates valid until September 2011. If ineligible for DEPB, they should explore Drawback rates. Another response concurs, advising that central excise duties rebate is possible if exporting with duty payment, and VAT is not applicable on exports. Additionally, service tax paid on input services for export manufacturing can be refunded.