TaxTMI 
TaxTMI 
EXPORT ORIENTED UNITS (EOUs), ELECTRONICS HARDWARE TECHNOLOGY PARKS (EHTPs), SOFTWARE TECHNOLOGY PARKS (STPs) SCHEME AND BIO-TECHNOLOGY PARKS (BTPs).
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....to EOU/ EHTP / STP / BTP unit. LoP / LoI shall have an initial validity of 2 years to enable the Unit to construct the plant & install the machinery and by this time the unit should have commenced production. In case the unit is not able to commence production in initial validity of 2 years, an extension of one year may be given by the DC for valid reasons to be recorded in writing. Subsequent extension of one year may be given by the Unit Approval Committee subject to condition that two thirds of activities including construction, relating to the setting up of the Unit are complete and Chartered Engineer's certificate to this effect is submitted by the Unit. Further extension, if necessary, will be granted by the Board of Approval. 3[All such LOPs/LOIs whose original or extended validity expires on or after 1st March 2020, may be deemed to be valid up to 31st December, 2020.] Once unit commences production, LoP / LoI issued shall be valid for a period of 5 years for its activities. This period may be extended further by DC for a period of 5 years at a time. (c) Proposals for setting up EOU requiring industrial licence may be granted approval by DC after clearance of proposal by B....
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....his regard. Where units give their option to continue after expiry of six months as stipulated above, DC will grant extension after obtaining approval of BOA. 6.02 Legal Undertaking (LUT) (a) Approved EOU / EHTP / STP / BTP unit shall execute an LUT with DC / Designated Officer concerned as in Appendix 6 E of Appendices & ANFs. (b) All EOU / EHTP / STP / BTP units should have permanent e-mail address. No LUT for new units shall be executed unless unit has its permanent e-mail address and digital signature on said e-mail ID. In event of an EOU not having permanent e-mail address and digital signature, further imports and DTA sale shall not be permitted by DC. 6.03 Export of Goods and Services (a) Software units may undertake exports using data communication links or in form of physical exports (which may be through courier service also), including export of professional services. (b) EOUs shall be permitted to export jewellery on basis of a notional rate certificate issued by nominated agency. This rate will be based on prevailing Gold / US$ rate and US$ / INR rate in notional rate certificate. Certificate issued by nominated agency should not be older than 7 working days of d....
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....ds by EOU / EHTP / STP / BTP units shall be subject to following conditions: (a) Goods shall be imported into EOU / EHTP / STP / BTP premises. However, agriculture and allied sectors and granite sector units in EOU may supply / transfer capital goods and inputs in farm / fields / quarries with prior intimation to jurisdictional Customs authorities, provided ownership of goods rests with EOUs. Granite sector would also be allowed to take spares upto 5% of value of Capital Goods to quarry site. (b)Procedure as prescribed under Customs/Central Excise rules for EOUs and units in EHTP / STP / BTP will be followed, and appropriate bond executed with Customs/Central Excise Authorities. (c) (i) The period of utilisation of goods, including capital goods, shall be co-terminus with the validity of LoP. (ii) However, imported tea shall be utilized within a period of 6 months from date of import. Similarly, export obligation against import of items {covered by Chapter 9 of ITC(HS)} and coconut oil shall be fulfilled within a period of 90 days from the date on which first import consignment is cleared by Customs Authorities. 4[In case the export obligation period expires during 1st March....
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....ject to DoR guidelines. (d) For IT and IT enabled services, persons authorized by software units may access facility installed in EOU / EHTP / STP / BTP unit through communication links. 6.08 Facility of working from a place outside the unit Person(s) / employee(s) authorized by a unit of (i) IT related EOU or (ii) STP or (iii) EHTP or (iv) BTP may work from a place outside the said unit, subject to the following conditions: (i) There must be an Authorisation from the unit specifying the duration of such authorization. (ii) Responsibility for carrying out the work and supervision, if any, be that of the unit, which will be liable for any misuse. (iii) Export of the resultant products / services would take place only from the premises of the unit. 6.09 Leasing of Capital Goods Value of imported capital goods financed through leasing companies or obtained free of cost and / or on loan / lease basis, shall also be taken into account for purpose of calculation of NFE as defined in FTP. 6.10 Net Foreign Exchange (NFE) Earnings (a) EOU / EHTP / STP / BTP unit shall be a positive net foreign exchange earner. NFE earnings shall be calculated cumulatively in the block period as pe....
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....apturing information on services ex orts from STPs.] (b) Unit shall be able to account for entire quantity of each category of homogenous goods imported / procured duty and/or tax free, by way of exports, sales / supplies in DTA or transfer to other SEZ / EOU / EHTP / STP / BTP units and balance in stock. However, at no point of time, units shall be required to correlate every import consignment with its exports, transfer to other SEZ / EOU / EHTP /STP / BTP units, sales in DTA and balance in stock. Any matter for clarification as to whether goods are homogenous or not shall be decided by Units Approval Committee. 6.12 Monitoring of NFE Performance of EOUs shall be monitored by Units Approval Committee as per guidelines given in Appendix 6 F of Appendices & ANFs. Performance of EHTP / STP / BTP shall be monitored by DeitY / DoBT jointly with jurisdictional Customs authority. 6.13 Conversion of Scrap / Dust / sweeping of Gold / Silver / Platinum into Standard Bars Scrap / dust / sweeping of gold / silver / platinum may be sent to Government of India Mint / private mint from EOU / EHTP / STP units and returned to them in standard bars in accordance with procedure prescribed by C....
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....it concerned. (c) Export orders so procured shall be executed within parameters of EOU / EHTP / STP / BTP schemes and goods shall be directly transferred from unit to port of shipment. (d) Fulfilment of NFE by EOU / EHTP / STP / BTP units in regard to such exports shall be reckoned on basis of price at which goods are supplied by EOUs to other exporter or other EOU / EHTP / STP / BTP / SEZ unit. (e) All export entitlements, including recognition as Status Holder would accrue to exporter in whose name foreign exchange earnings are realized. However, such export shall be counted towards fulfilment of obligation under EOU / EHTP / STP / BTP scheme only. 6.20 Others Entitlements (a) FOB value of export of an EOU / EHTP / STP / BTP unit can be clubbed with FOB value of exports of its parent company in DTA or vice versa for the purpose of according Export House and Trading House status. (b) Sectoral norms as notified by Government shall apply to FDI in service activities. (c) STP Units / EHTP Units / Software EOUs may also use all duty and/or tax free equipment / goods for training purpose (including commercial training), subject to condition that no duty free equipment / goods sh....
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....awings to premises of sub - contractors, subject to condition that these shall be brought back to premises of units on completion of job work within a stipulated period. Raw materials may or may not be sent along with these goods. (e) In case of sub - contracting of production process abroad, goods may be exported from sub - contractor premises subject to conditions that at the time of clearance of goods, the EOU / EHTP / BTP / STP unit shall declare (i) the transaction value of the finished goods to be cleared from the sub - contractor's premises abroad; (ii) job work charges to be paid to the sub - contractor abroad; and (iii) value of intermediate goods; supported with documents like (a) sale price contract / or invoice for the finished goods, (b) job work contract and (c) the basis of arriving at the value of intermediate goods. The EOU / EHTP / BTP / STP unit shall also ensure full repatriation of foreign exchange declared as the transaction value of the finished goods cleared from the sub - contractor's premises abroad. 6.22 Contract Farming EOUs engaged in production / processing of agriculture / horticulture / aquaculture products may, on basis of annual permission from ....
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....25 Export through Show-rooms abroad / Duty free shops Export of goods is also permitted for display / sale in permitted shops set up abroad or in showrooms of their distributors / agents. Items not sold abroad within 180 days shall be re-imported within 45 days. 6.26 Sale through Showrooms / Retail outlets at International Airports EOUs may set up showrooms / retail outlets at International Airports for sale of goods in accordance with procedure laid down by Customs authorities. Items remaining unsold after a period of 60 days shall be exported or returned to respective EOUs. 6.27 Personal Carriage of Import / Export Parcels including through Foreign Bound Passengers (a) For Personal carriage of jewellery by foreign bound passenger, following documents shall be submitted by EOUs as proof of exports: (i) Copy of shipping bill filed by EOUs; (ii) A copy of Currency Declaration Form filed by Foreign buyer with Customs at time of his arrival; and (iii) Foreign Exchange Realisation / Encashment Certificate from Bank. (b) In addition to this, Personal Carriage by foreign bound passenger on Document Against Acceptance (DA) / Cash On Delivery (COD) basis is also allowed. EOUs will....
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....ubber moulds through all permissible mode of export including through courier agencies / post. For statutory requirement of Stability & Retention sample with manufacturer, an EOU / EHTP / BTP / STP unit may re- import with or without payment of duties/taxes as provided at para 6.01(d)(ii) of FTP those samples, which were exported by it, under intimation to Custom Authorities, and FOB value of such samples shall not be counted for NFE purpose and other export benefits, if any. (d) An EOU, on basis of records maintained by them and on prior intimation to Customs authorities, may send samples to other EOUs for display on returnable basis within a period of 30 days. 6.30 Donation of Computer and Computer Peripherals EOU / EHTP / STP / BTP unit may be allowed by Customs authorities concerned to donate imported / indigenously procured (bought or taken on loan) computer and computer peripherals, including printer, plotter, scanner, monitor, keyboard and storage units without payment of duty other than applicable taxes under GST Law, two years after their import / procurement and use by units, to a school run by Central Government, or Government of a State or, a Union Territory or, a lo....
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....al / permission shall be granted by officer designated by DeitY / Director (STPI). Designated officer shall also exercise powers of adjudication under Section 13 read with Section 11 of FT (D&R) Act, 1992, as amended, in respect of STP / EHTP as mentioned in Gazette Notification No. S.O. 106 (E) dated 30-1-2006. Similarly in case of units under BTP, necessary approval / permission shall be granted by officer designated by DoBT. However, designated officers shall adopt criteria for automatic approval of new units as laid down in Appendix 6 A of Appendices & ANFs. 6.34 Administration of EOUs / Powers of DC / Designated Officer DC / Designated Officer shall have following powers in respect to units. Jurisdiction of DC is given in Appendix 6 J of Appendices & ANFs. (1) Conversion of sick / closed DTA unit into EOU; (2) Conversion of EOU to STP / EHTP / BTP and vice-versa as per prescribed procedure; (3) To allow increase in value of capital goods in terms of Indian Rupees, on account of foreign exchange rate fluctuations; (4) To permit capacity enhancement without any limit in case of delicensed industries only; (5) Permit broad-banding for similar goods and activities mentioned....
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....from place mentioned in LoP to another and / or to include additional location outside territorial jurisdiction of original DC / Designated Officer, subject to such conditions as BOA may decide. 6.36 Clearance of Capital Goods in DTA Clearance of capital goods, including second hand, in DTA shall be allowed as per para 6.15(b) of FTP and import policy in force on date of such clearance. 6.37 Depreciation Norms Depreciation up to 100% is permissible for Computers and Computer peripherals in 5 years and 10 years in case of other items. (a) Depreciation Norms for Computers and Computer Peripherals: Depreciation for computers and computer peripherals shall be as follows. 10% for every quarter in first year; 8% for every quarter in second year; 5% for every quarter in third year; 1% for every quarter in fourth and fifth year. (b) Depreciation Norms for Other Capital Goods: For capital goods, other than above, depreciation rate would be as follows: 4% for every quarter in first year; 3% for every quarter in second and third year; 2.5% for every quarter in fourth and fifth year; 2% for every quarter thereafter. 6.38 Conversion (a) Existing DTA units, may also apply for c....
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.... or Central Excise. (g) Personal carriage of samples: Personal carriage of samples of Gems & Jewellery by status holder EOUs are allowed subject to limit fixed in Paragraph 6.24 without a need for prior permission from DC / Customs. (h) Activities which do not require permission: In respect of following activities of a status holder, permission will not be required from DC or jurisdictional Central Excise/Customs authority: DTA sale of finished products in terms of Paragraph 6.08(a) of FTP; Participation in exhibition and Personal carriage of Gems & Jewellery for export promotion tours subject to fulfilment of conditions of Paragraph 6.24 of HBP. However, prior intimation thereof needs to be given. 6.41 Time Bound Disposal of Applications DC shall dispose of applications expeditiously. Following time schedule shall normally be followed to dispose of applications provided application is complete in all respects and is accompanied with prescribed documents. S. No. Category of Application Time limit for disposal (days) 1 Issue of LoP / LoI 15 2 Conversion of LoP / LoI 15 3 Acceptance of LUT 3 4 Renewal of LUT 3 5 Permission for broad banding / Diversification ....