PUBLIC NOTICE NO. 35/2006, DT. 26/07/2006

Changes in HB. Vol.1 - Supplies from DTA to EOU/EHTP/STP, CA Certificate, DTA - C Form (ITES)/(BPOs) Units

In exercise of powers conferred under Paragraph 2.4 of the Foreign Trade Policy 2004-2009, the Director General of Foreign Trade hereby makes the following amendments in the Handbook of Procedures, Vol.I:

1. In Appendix 14-I-I, the following amendments shall be made :-

(i) Sub-para 2(a) shall be amended as under:

“(a) The supplies from DTA to EOU/EHTP/STP units must be utilized by them for production of goods meant for export and/or utilized for export of services and may include raw material, components, consumables, packing materials, capital goods, spares, material handling equipment etc. on which CST has been actually paid by the EOU/EHTP/STP.”

(ii) Sub-para 2(a)(ii) shall be amended as under:

“(b) While dealing with the application for reimbursement of CST, the Development Commissioner or the designated officer of EHTP/STP shall see, inter-alia, that the purchases are essential for the production of goods meant for export and/or to be utilized for export of services by the units.”

(iii) Sub-para 3(v)(a) shall be amended as under:

“(a) Chartered Accountant’s Certificate, meeting the following criteria, certifying receipt of the goods as shown in Annexure-II in the bonded premises, scrutiny of original invoice/bill of the supplier and proof of payment against each invoice/bill and its reconciliation with ‘C’ Form. In case of IT enabled services (ITES)/Business Process Outsourcing (BPO) units, reconciliation with ‘C’ form will not be necessary as they are not eligible for issue of ‘C’ form.

(iv) In sub-para 3(v)(b), the first sentence shall be amended as under:

“Photostat copy of ‘C’ Form except in case of IT enabled Services (ITES)/Business Process Outsourcing (BPOs) Units, issued by the EOU/EHTP/STP to the supplier in the DTA with reference to the counterfoil produced by the unit.”

(v) Sub-para 3(vi) shall be amended as under:

“(vi) The reimbursement will be limited to the payment of CST against ‘C’ form only, except in case of IT enabled services (ITES)/Business Process Outsourcing (BPO) units.”

2. In Annexure 1 to Appendix 14-I-I, the following amendments shall be made:-

(i) The opening sentence under Annexure 1 shall be amended as under:-

“Application for claiming reimbursement of Central Sales Tax against ‘C’ Form and in case of IT enabled Services (ITES)/Business Process Outsourcing (BPOs) Units without ‘C’ form for the goods brought into the bonded premises of the EOU/EHTP/STP for the quarter ending on ….

(ii) After Sl.No.5(h), the following shall be added:

(i) Total amount of CST paid (Without ‘C’ form) by ITES/BPO Unit.”

(iii) The existing Sl.No.5(i) shall be renumbered as “5(j)”.

(iv) Declaration (a) under the heading “Undertaking and Declaration” shall be amended as under:

“(a) The goods for which the claim has been made are meant for utilization for production of goods meant for export and/or for utilization for export of services of the EOU/EHTP/STP unit and will be utilized only in our factory and we shall not divert or dispose off the material procured without obtaining prior permission of the concerned Development Commissioner.”

3. This issues in Public interest.

Sd/-

( K. T. CHACKO )
Director General of Foreign Trade and
Ex-Officio Additional Secretary to the Government of India

(Issued from F.No.01/92/180/35/AM07/PC.II)

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