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TMI BlogEPCG queryX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear sir I wanted to understand, if I purchase shuttleless looms under EPCG from a domestic manufacturer/supplier, do I get refund for CST and entry tax apart from excise duty refund. Also under EPCG do I get refund for import duty applicable on parts used for manufacturing shuttleless looms by my domestic supplier, under deemed exports. It would be great if you can help than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ks Prakash - Reply By ganeshan kalyani - The Reply = EPCG is Export Promotion Capital Goods. The Scheme allow import of Capital Goods for pre-production, production, post-production at zero duty subject to an export obligation of certain no of times (as applicable) of duty saved on capital goods imported under EPCG license. From this phrase you can co-relate your business arrangement to avail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the benefit. - Reply By CS SANJAY MALHOTRA - The Reply = Dear Prakash, Capital Goods can be sourced from domestic supplier against EPCG with invalidation letter. Supplies from Domestic Supplier will be treated as Deemed Exports and either the Supplier OR Buyer can claim the TED (Terminal Excise Duty) refund from jurisdictional DGFT Office. Now if the supplier of Looms would like to source part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for manufacture of looms, he has to pay required Excise Duty and the same will be set off against Excise duty leviable on Looms supplies to you under EPCG with invalidation letter. The said duty charged by your looms supplier to you will be claimed as TED refund. Your Supplier can also claim the benefit of Drawback against deemed exports from their respective DGFT office. Another option for you ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r supplier can for Advance Licence from their DGFT office against the EPCG given by you for Import of Duty free material. Hope the above addresses your question. regards CS Sanjay Malhotra - Reply By prakash bose - The Reply = dear sir thankyou for response. pls also let me know if cst and entry tax can be refunded on domestic purchase under epcg rgds prakash - Reply By ganeshan kalyani - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Reply = Cst set off is not available, hence refund cannot be claimed. entry tax can be set off against Vat liability. but refund cannot be claimed. - Reply By CS SANJAY MALHOTRA - The Reply = EPCG Scheme does not have any provision of Refund of CST/Entry Tax. Entry Tax in some states is allowed to be set off against VAT/CST payable and some states don;t allow such adjustment. For e,g, P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unjab VAT Rules allows set off of Entry Tax against Sales Tax liability whereas MP Govt does not allow Entry Tax set off. Please go through your State Tax Law provisions. - Reply By prakash bose - The Reply = thanks a lot - EPCG query - Query Started By: - prakash bose Dated:- 15-5-2015 Customs - Import - Export - Customs - SEZ - Got 6 Replies - Customs - Discussion Forum - Knowledge Shari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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