Entitlement for supplies from the DTA

6.11

(a) Supplies from the DTA to EOU/EHTP/STP/BTP units will be regarded as "deemed exports" and the DTA supplier shall be eligible for the relevant entitlements under chapter 8 of the Policy besides discharge of export obligation, if any, on the supplier. Notwithstanding the above, EOU/ EHTP/ STP/BTP units shall, on production of a suitable disclaimer from the DTA supplier, be eligible for obtaining the entitlements specified in chapter 8 of the Policy. For the purpose of claiming deemed export duty drawback, they shall get Brand Rates fixed by the Development Commissioner wherever All Industry Rates of Drawback are not available.

(b) Suppliers of precious and semi-precious stones, synthetic stones and processed pearls from DTA to EOU shall be eligible for grant of Replenishment Licenses at the rates and for the items mentioned in the Handbook (Vol.1).

(c) In addition, the EOU/EHTP/STP/BTP units shall be entitled to the following:-

i. Exemption from payment of Central Sales Tax on goods manufactured in India.

ii. Exemption from payment of Central Excise Duty on goods procured from DTA on goods manufactured in India.

iii. Reimbursement of Central Excise Duty/ additional excise duty paid on bulk tea procured from licenced auction centres.

iv. Reimbursement of Duty paid on fuels procured from domestic oil companies. as per the rate of Drawback notified by the DGFT from time to time.

v. Exemption from payment of service tax.