Conversion

6.37.1

Existing DTA units, may also apply for conversion into an EOU/EHTP/STP/BTP unit, but no concession in duties and taxes would be available under the scheme for plant, machinery and equipment already installed. On coversion, they would get Income Tax concessions but limited to the period of 10 year from original commencement of manufacture or that prescribed under Section 10 of Income Tax Act whichever is earlier. For this purpose, the DTA unit may apply to the Development Commissioner/Designated Officer concerned in the same manner as applicable to new units. In case there is an outstanding export commitment under the EPCG scheme, it will be subsumed in the export performance of the unit. If the unit is having outstanding export commitment under the Advance Licensing Scheme, it will apply to the Advance Licensing Committee for reducing its export commitment in proportion to the quantum of duty free material actually utilised for production and permitted to carry forward the unutilized material imported against the Advance Licence, if any, under the EOU/EHTP/ STP/BTP scheme.

(Please refer P.N.NO. 17/2004-09, DT. 15/10/2004 for word "concession" in the first sentence of this para)