DTA Sales entitlement for EOU .
Gargi Ranade
(Querist) 18 November 2009
This query is : Resolved
Respected Sir/Madam,
I am working as a Company Secretary of 100% EOU ,I have a Query regarding DTA entitlement.
1. Sale to EPCG License holder is treated as Deemed Export. Can we Add this deemed export in Export while calculating DTA entitlement which is 50% of FOB of Export.
2.If EOU have "NIL" DTA Entitlement can it sale to EPCG Licence holder as same will be treated as deemed export and will not be treated as DTA sale.
3. If sale to EPCG holder is ultimatly for Export promotion then how can it eat Entitlement itself .
I have this doubt due to ambiguous and vegue statement in FTP in para 6.8,6.9
I have one case[2006 (194) E.L.T.344 (Tribunal) ] in which Tribunal decided that EPCG sale should be treated as a Export for computing DTA Entitlement. Can a dec. taken by tribunal is sufficient to prove my side.kindly help its urgent .
s.subramanian
(Expert) 31 October 2010
Yes, Decision of the Tribunal is enough and it is an authoritative precedent.
