Deemed Export

Dear Arindam,

The STP Scheme provides for DTA sales depending on the export obligation achieved.  STP Units are permitted DTA sales upto 50% in value terms provided the unit has fulfilled its minimum exports.  STP units wishing to access to DTA are required to apply STPI for obtaining DTA entitlement.  After the DTA entitlement is issued by STPI, STP units can do DTA sales in following forms:

Physical

Consultancy Services

Through Data-communication links

The following DTA sales by STP units are eligible for export obligation benefit.

Supplies to other STP/100% EoU/EHTP units

Supplies effected in DTA against payment in foreign exchange

Supplies effected in DTA under global tender conditions

Supplies against advance License and other import license.

This is the legal status & requirements for sale in DTA. For more details you can email me with details of the transaction.

Regards

Amit Soni

Hi Amit

Thanks for the reply.

Here we are talking about Bill to Ship to concept where we will be billing it to UK and shipping the material to Rajasthan.

What should be our status as we are operating from an EHTP unit and will be receiving the Sales Realisation in USD

Regards

Arindam

Dear Arindam,

In yourr case if the consideration is remitting from owerseas, than it will amount to the deemed export.

Regards..

Amit