Other Entitlements

6.12

Other entitlements of EOU/EHTP/STP/BTP units are as under:

(a) Exemption from Income Tax as per Section 10A and 10B of Income Tax Act.

(b) Exemption from industrial licensing for manufacture of items reserved for SSI sector.

(c) Deleted

(d) Export proceeds will be realized within 12 months.

(e) Units will be allowed to retain 100% of its export earning in the EEFC account.

(f) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA, where unit has

(i) a turnover of Rupees 5 crores or above;

(ii) unit is in existence for atleast 3 years; and

(iii) the unit:

a) has achieved positive NFE / export obligation wherever applicable;

b) has not been issued a show cause notice or a confirmed demand, during the preceding 3 years, on grounds other than procedural violations, under the penal provision of Customs Act, the Central Excise Act, the Foreign Trade (Development & Regulation) Act, the Foreign Exchange Management Act, the Finance Act, 1994 covering Service Tax or any allied Acts or the rules made thereunder, on account of fraud / collusion / willful mis-statement / suppression of facts or contravention of any of the provisions thereof;

(g) 100% FDI investment permitted through Automatic Route similar to SEZ units.

(h) Units shall pay duty on the goods produced or manufactured and cleared into DTA on monthly basis in the manner prescribed in the Central Excise Rules.