slideshoweou

Information about slideshoweou

Published on June 19, 2007

Author: Amateur

Source: authorstream.com

Content

EOU Scheme-Overview:  EOU Scheme-Overview Units undertaking to export their entire production of goods and services may be set up under the Export Oriented Unit (EOU) Scheme EOUs can get a location of their choice Customs-bonded anywhere in India For setting up an EOU in Karnataka, Kerala, Lakshadweep or Mahe, apply to Development Commissioner, Cochin SEZ EOUs can import without duties, all capital goods and raw materials for running the unit. EOUs can procure these items from Indian sources also without excise duties and sales taxes EOUs can sell upto 50% of FOB value of exports in the Indian market at concessional duties New EOUs get Corporate Income Tax concessions till 2009 Approvals for EOUs:  Approvals for EOUs EOUs are given approval for manufacture of goods, including re-furbishing, as well as for rendering of services including bio-technology, BPO, Call Centres, IT enabled Services. An EOU may also engage in mining, agriculture, aquaculture, floriculture, or horticulture. Trading by EOUs is not permitted Minimum Investment for approval as an EOU should be Rs.10 million in plant andamp;machinery. Software /services/ handicrafts/ agriculture/ floriculture/ aqua-culture/ animal husbandry/ information technology are exempted from this size restriction. Approvals for EOUs:  Approvals for EOUs Licences are required for Manufacturing arms and ammunition, atomic substances, narcotics/psychotropic substances, and tobacco products Establishing EOUs in Bangalore and Cochin city limits (unless it is a non-polluting sector EOU, or is located in an industrial estate within the city) Approvals for licensable activity and services are given by the Board of Approvals in the Commerce Ministry Applications are to be routed through the Development Commissioner Approval (called Letter of Permission (LOP)) for non-licensable manufacturing activity is given locally by the Development Commissioner Relevant forms are available at http://www.cepz.com/eouforms EOU Scheme Features:  EOU Scheme Features EOUs may export all products except prohibited items of exports EOUs may import without duty all types of goods, including capital goods required for its activities, unless they are prohibited for import Even second hand plant andamp; machinery can be imported. Capital Goods can be purchased, loaned, sourced from foreign/domestic leasing companies or brought free of cost. EOUs get upto 5 years for utilization of imported capital goods, and upto 3 years for other items. EOUs & FDI:  EOUs andamp; FDI 100% FDI in manufacturing EOUs is permitted under the automatic route of the Reserve Bank of India i.e. first bring in the money, and then inform Reserve Bank of India’s local office in Form FC(RBI)  within 30 days of receipt Also under the automatic route for EOUs are External Commercial Borrowing upto USD 50 million, with maturities of 3 years or more, for funding and running the unit. Use of brand names/trademarks, if royalty is upto 2% on exports and 1% on domestic sales, without technology transfer Foreign technology tie-ups, if lump sum payment does not exceed USD 2 million, and if royalty is upto 5% on domestic sales and 8% on exports, even for wholly owned subsidiaries EOUs and Foreign Exchange:  EOUs and Foreign Exchange EOUs may freely repatriate investment andamp; returns abroad EOUs need to bring export proceeds to India only within 360 days of export And even then, upto 100% may be retained in foreign currency in the unit’s EEFC Account EOUs may invoice sales to other EOUs etc in foreign exchange EOUs may invoice sales to Indian entities other than EOUs also in foreign exchange sourced from from their EEFC account or abroad Tax Concessions for EOUs:  Tax Concessions for EOUs New EOUs are entitled under to Corporate Income Tax exemption on physical exports out of India till 2009 Central Sales Tax is reimbursed on purchases from local manufacturers Supplies from local manufacturers are free of Central Excise Duty In case duties are paid, Terminal Excise Duty is reimbursed EOUs in manufacturing sector get exemption from State Sales Tax on inputs (excepting fuel) EOU Scheme & DTA entities:  EOU Scheme andamp; DTA entities Existing Indian entities can open a new EOU under the same legal entity But the EOU division must maintain separate accounts, including separate Bank accounts DTA units can also convert to EOU scheme Units working with EPCG /Advance Licencing can also convert to EOU scheme Their pending licence obligations will be subsumed into the EOU scheme. But to be eligible for Corporate Income Tax concessions under section 10B, it has to be ensured that old assets do not exceed 20% of total assets of the EOU EOUs & Customs Department:  EOUs andamp; Customs Department EOUs have to get their premises bonded by the local Customs/ Central Excise Department, and function under their supervision They can get a location of their choice so bonded. All duty-free items have to be brought here first. One single multi-purpose bond with the Customs /Central Excise Department, called the B 17 Bond, suffices for all operations. While there is no physical control, there is record-based control EOU has to maintain proper account of the import, consumption and utilisation of all imported/locally procured materials and exports made and submit them periodically to the Customs. Duty foregone under the EOU scheme with interest is recoverable in case of fraudulent activity (along with prosecution andamp; penalties) Export Obligations of EOUs:  Export Obligations of EOUs EOUs have only to be foreign exchange positive FE Inflowsandgt; FE Outflows where FE Inflows = Export earnings (Direct Exports+ Exports through Third Parties + Inter-unit Sales + Exports to EOU/SEZ/STP/EHTPs) FE Outflows = Foreign Exchange outgo on imports of Raw materials/consumables + FE payments of commission/ royalty/ fees/ dividends/ interest on ECB + share of amortised value of capital goods imported Imported capital goods are amortized over 10 years; only amortized amount is included in NFE calculation Values are included in the calculation even if the imports are not actually paid for. EOU Scheme- Duty-free Supplies from Indian Market:  EOU Scheme- Duty-free Supplies from Indian Market Supplies from Indian manufacturers to EOUs are classified as deemed exports, and the suppliers are eligible for Advance Licence for import of intermediate inputs Deemed Export Duty Drawback Discharge of export performance obligation on the supplier EOUs may obtain, on production of a suitable disclaimer from the suppliers, the duty drawback and refund of Terminal Excise Duty EOUs’ Access to Indian Market:  EOUs’ Access to Indian Market Sales to the Indian Market EOUs can sell duty-free to other EOU /SEZ /STP /EHTPs etc EOUs can sell on full duties in the DTA against foreign currency (from EEFC account or from abroad) This also counts for NFE. Apart from the above, EOUs can sell upto 50% of FOB value of physical exports to the DTA at concessional duties EOUs can sell over and above that at full duties, subject to NFE being positive EOU Sales to other EOUs:  EOU Sales to other EOUs EOU’s Sales are duty-free to Indian entities like SEZ /EOU /EPZ /STP /EHTP units, Advance Licence Holders, Bonded Warehouses andamp; Educational institutions, defence establishments, other agencies notified by Government of India as eligible for duty-free imports. These sales count for computation of NFE. But they do not count as physical exports. They can be invoiced in foreign currency or in Indian currency. EOUs & Subcontracting :  EOUs andamp; Subcontracting EOUs can subcontract up to 50% of production or part of production process to units in the EOU or Indian manufacturers. EOUs may temporarily take to the job worker’s premises jigs, moulds, tools, fixtures, tackles, instruments, hangers, patterns andamp; drawings for job work EOUs can even subcontract to units abroad EOUs can import raw materials andamp; components free of cost for job-working and return. EOUs can undertake job-work for export on behalf of local manufacturers. EOU Scheme: Exit Policy:  EOU Scheme: Exit Policy Units can de-bond without paying duties capital goods they have used for 10 years Software units can de-bond on duty-free basis after 3 years. Units can wind up their operations on meeting their export obligations by Exporting back any imported capital goods and other material, or transferring them to another SEZ/EOU unit, or Destroying the items in Customs presence, or Donation on gratis basis to educational institutions, or De-bonding on payment of duty on capital goods under the EPCG Scheme as a one time option, or De-bonding all duty-foregone items by paying duties at current rates on unutilised raw materials (imported value) and on capital goods (on depreciated value only) and selling them in the DTA. EOU Scheme: Exit Policy:  EOU Scheme: Exit Policy In case of failure to achieve positive NFE, duty foregone under the EOU scheme with interest is recoverable in proportion to the shortfall in NFE If the unit has not met positive NFE, de-bonding shall also be subject to payment of penalties under the Foreign Trade (Development andamp; Regulation) Act, 1992, and under the Customs Act, 1960 EOU Scheme: Who can operate:  EOU Scheme: Who can operate To run manufacturing activities foreign companies need to set up an Indian Company The Indian Company has to have independent legal status, distinct from the parent foreign company. The Company may be a wholly-owned subsidiary, or a joint venture company in financial collaboration with an Indian company in India. A Company registered in India can start an EOU unit without starting a new legal entity: separate accounts suffice. To run manufacturing activities foreign companies need to set up an Indian Company The Indian Company has to have independent legal status, distinct from the parent foreign company. The Company may be a wholly-owned subsidiary, or a joint venture company in financial collaboration with an Indian company in India. A Company registered in India can start an EOU unit without starting a new legal entity: separate accounts suffice. How to Contact:  How to Contact For more details of Indian EOUs, see website http://eouindia.com For details of EOUs with the Development Commissioner, CSEZ, see www.cepz.com/sez/heou/index.htm especially the 'How To Apply' section at http://www.cepz.com/eouhowtoapply Contact CSEZ office at Cochin [email protected] Phone in at ++91-484-2413222 at Bangalore [email protected] Phone in at 080-25714874

Related presentations


Other presentations created by Amateur

Time Management
19. 06. 2007
0 views

Time Management

genitourinary surgery
30. 04. 2008
0 views

genitourinary surgery

musso
28. 04. 2008
0 views

musso

JBEIT Procurement
18. 04. 2008
0 views

JBEIT Procurement

Rodgers
17. 04. 2008
0 views

Rodgers

IPsec Business
16. 04. 2008
0 views

IPsec Business

1narongchai
14. 04. 2008
0 views

1narongchai

ch03 4e sp07
13. 04. 2008
0 views

ch03 4e sp07

EntretiensMD 061005 VA
10. 04. 2008
0 views

EntretiensMD 061005 VA

The story of Abraham 3 10
19. 06. 2007
0 views

The story of Abraham 3 10

low cost strategy 040405
13. 03. 2008
0 views

low cost strategy 040405

PP Latin America Unit XX
22. 10. 2007
0 views

PP Latin America Unit XX

C6436 11th Family
24. 02. 2008
0 views

C6436 11th Family

reniers film history
20. 02. 2008
0 views

reniers film history

08 Osborne Use of Methanol
07. 11. 2007
0 views

08 Osborne Use of Methanol

Notes Japan
09. 10. 2007
0 views

Notes Japan

Pablo NERUDA
16. 10. 2007
0 views

Pablo NERUDA

indiaglorious
16. 10. 2007
0 views

indiaglorious

Greeklegacies
17. 10. 2007
0 views

Greeklegacies

CRP 1000 Presentation
19. 10. 2007
0 views

CRP 1000 Presentation

CrossingtheFinishLine
05. 09. 2007
0 views

CrossingtheFinishLine

RAI Status Report
23. 10. 2007
0 views

RAI Status Report

distribution aufait
23. 10. 2007
0 views

distribution aufait

comma
05. 09. 2007
0 views

comma

MIE2006 Workshop
05. 09. 2007
0 views

MIE2006 Workshop

PlenaryPovertyNarayan
29. 11. 2007
0 views

PlenaryPovertyNarayan

ubicomp smart homes
27. 08. 2007
0 views

ubicomp smart homes

ShirleyJackson
27. 08. 2007
0 views

ShirleyJackson

Culture Conflict Resolution
27. 08. 2007
0 views

Culture Conflict Resolution

Ed Moyle 2006 RSA
27. 08. 2007
0 views

Ed Moyle 2006 RSA

anxiety
27. 08. 2007
0 views

anxiety

NYpanel 4 DATAUSE
05. 09. 2007
0 views

NYpanel 4 DATAUSE

Influenza 2006
25. 10. 2007
0 views

Influenza 2006

mals russia trip
26. 10. 2007
0 views

mals russia trip

geneticAlgorithm
29. 10. 2007
0 views

geneticAlgorithm

june7
15. 11. 2007
0 views

june7

The Romans WWtbaM
14. 12. 2007
0 views

The Romans WWtbaM

Lsn 3 Egypt
10. 10. 2007
0 views

Lsn 3 Egypt

Economics of ClimateChange
30. 12. 2007
0 views

Economics of ClimateChange

Amateur Satellites
03. 01. 2008
0 views

Amateur Satellites

bio refinery
03. 01. 2008
0 views

bio refinery

Nobelpreise
15. 10. 2007
0 views

Nobelpreise

Impact of Metrology Eng
22. 10. 2007
0 views

Impact of Metrology Eng

DensityNotes
06. 11. 2007
0 views

DensityNotes

All Star Grill
17. 12. 2007
0 views

All Star Grill

Slivovsky CPE350 Lecture5
07. 01. 2008
0 views

Slivovsky CPE350 Lecture5

Obesity Trends Map
09. 08. 2007
0 views

Obesity Trends Map

Obesity Prevalence
09. 08. 2007
0 views

Obesity Prevalence

Logics of Enquiry
09. 08. 2007
0 views

Logics of Enquiry

Obesity workshop
09. 08. 2007
0 views

Obesity workshop

CAIRO NOTABLE EARTHQUAKES
23. 11. 2007
0 views

CAIRO NOTABLE EARTHQUAKES

Robotalk
03. 01. 2008
0 views

Robotalk

Potts Whipple
12. 10. 2007
0 views

Potts Whipple

07 wifi Hovis
29. 10. 2007
0 views

07 wifi Hovis

prop50information
03. 01. 2008
0 views

prop50information

Angola MTB
19. 10. 2007
0 views

Angola MTB

PP JA FUENTES
22. 10. 2007
0 views

PP JA FUENTES

cowie
19. 11. 2007
0 views

cowie

myers12
09. 08. 2007
0 views

myers12

wehrle
15. 10. 2007
0 views

wehrle

4B2006
22. 10. 2007
0 views

4B2006

Energizing your online presence
27. 08. 2007
0 views

Energizing your online presence

PRC56 Amanda open
27. 09. 2007
0 views

PRC56 Amanda open

ufrj 2003
28. 12. 2007
0 views

ufrj 2003

voting
27. 08. 2007
0 views

voting

copyright law
30. 10. 2007
0 views

copyright law

My name is Meth
02. 10. 2007
0 views

My name is Meth

PAAB Presentation Kelly
27. 02. 2008
0 views

PAAB Presentation Kelly

healthy eating SC
04. 03. 2008
0 views

healthy eating SC

Future Naval Capabilities
06. 03. 2008
0 views

Future Naval Capabilities

FP7 FAFB Information 2
27. 11. 2007
0 views

FP7 FAFB Information 2

RigandShip experience
07. 11. 2007
0 views

RigandShip experience

MORTON
07. 11. 2007
0 views

MORTON

Pakistan RSpresentation
30. 03. 2008
0 views

Pakistan RSpresentation

Preciosa factura 1949
19. 06. 2007
0 views

Preciosa factura 1949

Postales de Amistad 1970
19. 06. 2007
0 views

Postales de Amistad 1970

Kickoff Presentation 2007
30. 10. 2007
0 views

Kickoff Presentation 2007

Simplemente Espectacular 1 1714
19. 06. 2007
0 views

Simplemente Espectacular 1 1714

Regalos Originales
19. 06. 2007
0 views

Regalos Originales

Regalito 1713
19. 06. 2007
0 views

Regalito 1713

realidad
19. 06. 2007
0 views

realidad

Toda mujer deberia 1971
19. 06. 2007
0 views

Toda mujer deberia 1971

The three wise men 2 of 12
19. 06. 2007
0 views

The three wise men 2 of 12

Tanga mania 2016
19. 06. 2007
0 views

Tanga mania 2016

srs presentation
19. 06. 2007
0 views

srs presentation

SOAP
19. 06. 2007
0 views

SOAP

HEARTof Darkness pres2
27. 08. 2007
0 views

HEARTof Darkness pres2

smpp tuberculosis janssens
15. 10. 2007
0 views

smpp tuberculosis janssens

AFD 070425 016
27. 08. 2007
0 views

AFD 070425 016

Rocks and Minerals
15. 10. 2007
0 views

Rocks and Minerals

corso studi fisica
15. 10. 2007
0 views

corso studi fisica

TL China
25. 03. 2008
0 views

TL China

Proverbios Animados 1951
19. 06. 2007
0 views

Proverbios Animados 1951

errors funny fatal
27. 08. 2007
0 views

errors funny fatal

20060828091411514
12. 10. 2007
0 views

20060828091411514

08 Neil Scales
16. 11. 2007
0 views

08 Neil Scales

Refleja Lo Que Piensas 1954
19. 06. 2007
0 views

Refleja Lo Que Piensas 1954

Recomenzar 1911
19. 06. 2007
0 views

Recomenzar 1911

ATAMS Pre Bid Presentation 2
28. 02. 2008
0 views

ATAMS Pre Bid Presentation 2

Newspapers drive sales for web2
04. 10. 2007
0 views

Newspapers drive sales for web2

Koonce et al Poster
09. 08. 2007
0 views

Koonce et al Poster

kottmann pl
18. 03. 2008
0 views

kottmann pl

The Lizards
19. 06. 2007
0 views

The Lizards

vet2
21. 10. 2007
0 views

vet2

Burger Ch07 Magnetics
05. 01. 2008
0 views

Burger Ch07 Magnetics

Robo en cajeros II 2080
19. 06. 2007
0 views

Robo en cajeros II 2080

Robo en cajeros 1908
19. 06. 2007
0 views

Robo en cajeros 1908

Quien Snoopy 1952
19. 06. 2007
0 views

Quien Snoopy 1952

hietala materiaali
27. 08. 2007
0 views

hietala materiaali

Lilas
09. 08. 2007
0 views

Lilas

454
16. 03. 2008
0 views

454

thor
05. 09. 2007
0 views

thor

Para enviar 1934
19. 06. 2007
0 views

Para enviar 1934

aug12 rita VeenaJha
17. 10. 2007
0 views

aug12 rita VeenaJha

Posiciones incorrectas 2012
19. 06. 2007
0 views

Posiciones incorrectas 2012

Heminger IBTTA VII
14. 11. 2007
0 views

Heminger IBTTA VII

PowerPointslaveshipi nternet
27. 08. 2007
0 views

PowerPointslaveshipi nternet

educators presentation
16. 02. 2008
0 views

educators presentation

Diversity in the Family
24. 02. 2008
0 views

Diversity in the Family