The benefits under the 100% EOU/EHTP/STPI.
- Approvals are given under single window clearance mechanism.
- An 100% EOU project may be set up anywhere in India.
- Jurisdictional Development Commissioners have the powers to approve import of capital goods.
- 100% foreign equity is permitted.
- All the imports Capital Goods, Raw materials, Components, Consumables in the EOU units are completely duty free, import of second hand capital goods also permitted.
- Re-Export of capital goods are permitted.
- Simplified Minimum Export Performance norms i.e., Net Foreign Exchange Earnings to be positive.
- Domestic purchases by EOU unit are eligible for the benefit of deemed exports to the equipment suppliers.
- The sales in the Domestic Tariff Area [DTA] shall be permissible up to 50% of the export in value terms.
- The capital goods purchased from the Domestic Tariff Area [DTA] are entitled for the benefits like levy of Excise Duty & Reimbursement of Central Sales Tax [CST].
- Capital invested by Foreign Entrepreneurs Know - How Fees, Royalty, Dividend etc., can freely repatriated after payment of Income Taxes due on them if any.
- Depreciation on Capital Goods above 100% over a period of ten years. Statutory Compliance for STP Units
Statutory Compliance for STP Units
Important statutory compliance for EOU units are listed below as reference
Each of such unit is required to maintain separate accounts for its operations. Separate annual balance sheet will have to be made for each such unit which would be become a part of the main balance sheet of the company. For maintaining separate accounts the following will have to be done:
- Maintenance of Separate Cash & Bank book and corresponding vouchers.
- Maintenance of sales invoices.
- Maintenance of Fixed Assets register.
- Maintenance of Foreign Inward Remittance Certificate file (FIRC's) & Bank Realisation Certificate file where the original of the FIRC's and BRCs are kept.
- Maintenance of contract file, where copies of contracts received from buyers are maintained.
- Preparation of yearly balance sheet for the unit which would ultimately become a part of the balance sheet of the company.
Each unit is required to maintain separate bank accounts for its operations. The units is free to have as many bank accounts as it desires but shall have to designate a single branch of bank whom all export documents will be submitted. In other words the work of handling of all shipping documents and realisation of export proceeds will have to be entrusted to this designated bank branch