EOU / STPI / EHTP:

EOU Scheme - Export Oriented Unit Scheme:

Export Oriented Unit Scheme is a unique scheme under which facility of Customs Act, Central Excise Act, and Foreign Trade Policy are combined and the scheme is crafted to provide maximum benefit to the exporter. An EOU can import or procure capital goods (new or second hand) as well as input goods domestically without payment of duties. The only obligation on the unit is earning positive Net Foreign Exchange. EOU scheme is required to fulfill compliances and procedure under Customs Act, Central Excise Act, Foreign Trade Policy, and rules/regulation made there under. We assist client strategizing, forming, operating and exist from EOU Scheme. We ensure that the Unit avails maximum eligible benefits like an exemption, refunds, duty drawback etc. which are entitled to EOUs.

EOU benefits:

There are numerous benefits of EOU Registration, financial assistance and other support from various Banks, government, and other agencies for Export Oriented Units. Some of the EOU benefits are given below:

• No license is required for import.
• Exemption from Central Excise Duty in the procurement of capital goods, raw-materials, consumables spares etc. from the domestic market.
• Exemption from customs duty on import of capital goods, raw materials, consumables spares etc.
• Reimbursement of Central Sales Tax (CST) paid on domestic purchases.
• Supplies from DTA to EOUs are treated as deemed exports.
• Reimbursement of duty paid on furnace oil procured from domestic oil companies to EOUs as per the rate of drawback notified by the Directorate General of Foreign Trade.
• 100% Foreign Direct Investment permissible.
• Exchange earners foreign currency (EEFC) Account
• Facility to realize and repatriate export proceeds within twelve months.
• Further extension of a time period can be granted by RBI and their authorized dealers.
• Re-export of imported goods found defective, goods imported from foreign suppliers on loan basis etc.
• Profits allowed to be repatriated freely without any dividend balancing requirement
• Duty-free goods are to be utilized in two years. A further extension is to be granted on a liberal basis.
• Job work on behalf of domestic exporters for direct export is valid.
• Conversion of existing Domestic Tariff Area (DTA) unit into an EOU is permitted.
• EOUs in agriculture and horticulture engaged in contract farming may be allowed to take out duty-free goods listed in Appendix 14-I to the fields of contact farmers for the production.

STPI Scheme - Software Technology Parks of India Scheme:

Established in the year 1991, the 'Software Technology Parks of India' (STPI) is a government of India managed export oriented scheme for the development and export of computer software, including export of professional services.

The STPI registration provides numerous benefits which include 100% foreign equity, tax incentives, duty-free import, duty-free indigenous procurement, CST reimbursement, DTA entitlement, deemed export etc. In fact, the scheme can largely be credited for attracting foreign investment and sealing India's reputation of a technology super power on the world stage.

These are just some of benefits of STPI scheme.

• Income tax holiday as per section 10A of the IT Act
• Customs duty exemption on imports of capital equipment
• Permission to set up STP anywhere in India
• Import of equipment on loan or lease basis
• Single window clearance approval scheme
• Reimbursement of Central Sales Tax on indigenously procured items
• Provision for import of all relevant equipment/goods including second-hand equipment (except prohibited items)
• Exemption of 100% excise duty on indigenous items procurement
• Permission for 100% Foreign Direct Investment through 'Automatic Route' of RBI
• Green card enabling priority treatment for government clearances / other services
• Sales in the DTA (Domestic Tariff Area) up to 50% of the foreign exchange earned by the STP/EHTP unit
• 100% Depreciation on capital goods over a period of five years
• Use of computer systems for training purposes (including commercial training) by oftware units
• Permission of sale of the products or services in the Domestic Tariff Area (DTA) to 50% of the export value
• Exemption from paying corporate income tax for a block of 10 years (2009)

Foreign companies who wish to set up an office in India need to meet the following statutory procedures.

Accounting procedure: It is compulsory for each and every STP units to maintain a separate account and annual balance sheet for its operations. Companies need to maintain all sales invoices, copies of contracts from different buyers, separate vouchers along with the cashbook and bankbook, and fixed asset register.

EHTP Scheme - Electronics Hardware Technology Park Scheme:

Units with an aim to export their entire production of goods and services may be set up in the Electronic Hardware Technology Park (E.H.T.P.) Scheme. Such units may be engaged in manufacture and services.

EHTP Benefits and Highlights:

• EHTP units may help to import free of duty all types of goods, including capital goods as defined in the Export Import (EXIM) Policy, required by it for manufacture, services, production, and processing or in connection therewith.
• The units shall also be permitted to import goods, including capital goods, free of cost or on loan from clients required for the approved activity.
• EHTP units may procure goods required by them for manufacture, services, production, and processing or in connection therewith, duty-free, from bonded warehouses in the Domestic Tariff Area set up under the Export Import (E.X.I.M.) Policy.
• Minimal "Minimum Export Performance" norms i.e., US Dollar one million or three times C.I.F. Value of imported goods whichever is higher & Positive Net Foreign Exchange Earnings against Export Earnings to be achieved over a period of five years

Our audit checks by professional team ensure procedures and compliances are followed carefully, the entitled benefits, are availed in time. The above functions are well supported by the consultancy and regular updates on changing indirect tax environment by our senior professionals. Units undertaking to export their entire production of goods and services may be set up under this scheme for import/ procurement domestically without payment of duties.

Units willingly to export their entire production of goods and services may be set up under the Export Oriented Unit (EOU Scheme) , Electronics Hardware Technology Park (EHTP Scheme) , Software Technology Park (STPI Scheme) or Bio-Technology Park (BTP Scheme) for manufacture of goods, including repair, re-making, reconditioning, reengineering and rendering of services. Trading units are not covered under these schemes.

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