AI Drafter 
TaxTMI 
TaxTMI 
GUIDELINES FOR MONITORING THE PERFORMANCE OF EOU/STP/EHTP UNITS
X X X X Extracts X X X X
X X X X Extracts X X X X
....of EOU units would be as follows: i) Watch - If there is shortfall in achieving the NFE as per norms in EOU Scheme at the end of 1st and IInd year; ii) For failure to achieve positive NFE, after completion of one year from the date of commencement of production, a cautionary letter may be issued; at the end of 3rd or subsequent year, Show cause notice will be issued if positive NFE is not achieved; after completion of block period as per para 6.04 of FTP, Development Commissioner would initiate penal action under the FT(D&R) Act, 1992, as amended. Final decision may be taken as far as possible within six months and positively within one year. iii) No action to be initiated if the Development Commissioner, on the receipt of reply from the unit, is satisfied that the shortfall has been on account of genuine reasons. 4. METHOD OF MONITORING: i) In all cases of exit from the Scheme where the unit has imported inputs and failed to fulfill the conditions of LOP with regard to NFE, appropriate steps are to be taken for penal action after issuing Show Cause Notice to the units. Steps may also be initiated for cancellation of LOP/LOA of units, which is not operating for more ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... could be resolved. f) At such places, if any infrastructure gaps are noticed, District Administration may be advised to prepare projects, which can be routed through State Government to the Ministry for approval under Scheme for central Assistance for Developing export infrastructure and other allied activities (ASIDE). g) Based on the joint review Development commissioner concerned would prepare a report for information of the Department of Commerce and CBEC and suggest corrective measures to enable the defaulting units to fulfill their obligation as per EOU Scheme/Customs Notification. PROFORMA-I (TO BE SUBMITTED BY THE ZONE) I. APPROVAL AND IMPLEMENTATION OF EOU UNITS: a) No. of valid approved units b) No. of units cancelled c) No. of units finally debonded d) No. of exporting units e) No. of units under implementation f) No. of units yet to be implemented II. RESULT OF MONITORING : Previous Year ( ) Current Year ( ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d of financial year. (9 months for EOUs) 12. Revenue contributions by the unit (a) (i) GST taxes and compensation cess under GST on DTA sale during the financial year (ii) Excise duty on DTA sale during the financial year (iii) Customs duties paid on account of reversal of exemption of duties availed on the inputs on DTA sale (b) Income tax paid, if any, during the financial year (c) Taxes, cess duties & levies (including CST) paid on domestic procurement. (d) Tax deducted at source in respect of employees. 13. Duties and/or taxes and compensation cess foregone by way of exemption/refund (Rs. In lakhs ) (a) on import (b) on indigenous procurement 14. Remarks ANNEXURE CALCULATION OF NFE 1. While calculating NFE achieved, following basic components are to be taken into consideration: i. Amortised value of capital goods and technical know how fee ii. Value of import of R. M. (which is consumed during the year and consumables, spares, etc.). iii. Other outflow of foreign exchange towards royalty, interest on external commercial borrowings etc. iv. Value of physical exports effected excluding DTA sales but including supp....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 30th September every year; Proforma I: Comparative statement of performance and monitoring as compared to previous year; Proforma II: Summary of annual performance of the EOU units, sector - wise with sectoral sub - totals. Proforma III: Unit-wise statement on NFE showing the result of review. PART A 3. CRITERIA FOR ANNUAL MONITORING: The criteria for keeping the unit under watch or initiating penal action in respect of EOU units would be as follows: i) Watch - If there is shortfall in achieving the NFE as per norms in EOU Scheme at the end of 1st and IInd year; ii) For failure to achieve positive NFE, after completion of one year from the date of commencement of production, a cautionary letter may be issued; at the end of 3rd or subsequent year, Show cause notice will be issued if positive NFE is not achieved; after completion of block period as per para 6.04 of FTP, Development Commissioner would initiate penal action under the FT(D&R) Act, 1992, as amended. Final decision may be taken as far as possible within six months and positively within one year. iii) No action to be initiated if the Development Commissioner, on the receipt of reply from the uni....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rformance and unit-wise action plan should be prepared for removal of bottlenecks. It should be ensured that the unit should have an export promotion strategy as well tentative targets for next few years, so that it has an idea as to what is to be achieved by them. Effective action should be taken against erring units to discourage any misuse of the scheme. e) For units under implementation, separate review be held so that their issues could be resolved. f) At such places, if any infrastructure gaps are noticed, District Administration may be advised to prepare projects, which can be routed through State Government to the Ministry for approval under Scheme for central Assistance for Developing export infrastructure and other allied activities (ASIDE). g) Based on the joint review Development commissioner concerned would prepare a report for information of the Department of Commerce and CBEC and suggest corrective measures to enable the defaulting units to fulfill their obligation as per EOU Scheme/Customs Notification. PROFORMA-I (TO BE SUBMITTED BY THE ZONE) I. APPROVAL AND IMPLEMENTATION OF EOU UNITS: a) No. of valid approved units : b) No.....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... DTA Sale: 11. Details of outstanding export proceeds (where the period of realisation is not extended by the competent authority) beyond 180/360 days at the end of financial year. (180 days for EOUs) 12. Revenue contributions by the unit (a) Excise duty on DTA sale during the financial year (b) Income tax paid, if any, during the year (c) State taxes, cess duties & levies (including CST paid on domestic procurement). (d) Tax deducted at source in respect of employees. 13. Remarks ANNEXURE CALCULATION OF NFE 1. While calculating NFE achieved, following basic components are to be taken into consideration: i. Amortised value of capital goods and technical know how fee ii. Value of import of R. M. (which is consumed during the year and consumables, spares, etc.). iii. Other outflow of foreign exchange towards royalty, interest on external commercial borrowings etc. iv. Value of physical exports effected excluding DTA sales but including supplies made under para 6.09 of the Chapter 6 of the Foreign Trade Policy and HBP. 2. Amortised Value of Capital Goods: For this purpose as much value of CG is taken into account as indicated i....