Show Cause Notice under EPCG Scheme – Best EPCG consultants
EPCG consultants and its benefits-
Export Promotion Capital Goods Scheme, aka the EPCG scheme, is a tax incentive designed to boost India’s industrial competitiveness by encouraging the import of capital goods required to manufacture high-quality goods and services in India accurately. There is permission to import capital goods at a 0% Customs Duty rate, subject to the fulfilment of an Export Obligation equal to six times the duty saved within six years of the Authorization’s issuance date.
This EPCG Scheme enables the import of capital goods for pre-production, production, and post-production for zero customs charge. Because of the constraints on export responsibilities under this plan, this program primarily helps heavy exporters.
What are these export obligations in the EPCG Scheme?
Under the EPCG model, an exporter needs to fulfil both the export obligations like Specific and Average export obligations. Specific export obligation means 6 times of duties, taxes and cess saved on capital goods. If you don’t comply with these export obligations defined by the DGFT authorities, you will pay customs duty saved amount and interest proportionate to the fulfilment value. The Government of India (GOI) has tasked the firms with meeting a deadline-bound export target.
According to the notification of the rules of this Scheme, the firms also have: –
– to maintain the average of the previous three years’ export performance of the designated export items mentioned in the permit or as amended subsequently.
– to submit to the Issuing Authority the statement of exports within three months of the block year’s expiration, as officially stated by the chartered accountant.
Monitoring of Export Obligation –
DGFT has recently issued Public notice wherein they have stated that, Authorization holders shall submit to the RA concerned by 30th June of every year, a report on fulfilment of export obligation through online. Such a report shall contain details such as Shipping bill/GST invoice number, date of export/supply, description of product exported/supplied and FOB/FOR value of export/supply for both specific as well as average export obligation. Any delay in online such an annual report shall be regularized on payment of Rs. 5000/- late fees for each financial year per authorization.
According to the terms, you cannot just withdraw from this program at any point without notifying the government. You need to fill out a closure application form with extreme care to notify the appropriate authorities. However, the DGFT will send you a showcase notice if you neglect to file the EO fulfilment status and closure application in time for your license.
The Show Cause Notice and its response time –
The defaulting company must respond to this Show Cause Notice and provide corroborating evidence within 15/30 days of the date of issuance, according to the concerned authority. Without this proof, the authority should presume that the company has nothing to say in defence.
The show cause notice clearly states that the issuance of this show-cause notice does not preclude the taking of any further legal action against the firm and company’s directors, partners, or proprietor under the Foreign Trade (D & R) Act of 1992, its implementing rules, or any other currently in effect laws or regulations. To avoid your company’s downfall, it is imperative that you handle this notification seriously.
EPCG Consultants
These complexities and legal jargon might be brutal to comprehend if you don’t have a comprehensive understanding. The EPCG consultant will then step in to assist you in creating a perfect plan to reap the full benefits of this Scheme. Starting with completing the paperwork for this Scheme and submitting a closure application to the appropriate authority, the EPCG consultants are the experts you will need.
The EPCG closure consultants may assist you with cancelling your EPCG License with DGFT. They make the entire procedure straightforward and stress-free for your company. All that you need to do is get in touch with one of the best EPCG EODC consultants and let the responsibility rest on their shoulders.
To benefit yourself and increase exports for the country, start your company’s path toward this government initiative. To avoid any infringement, contact the best EPCG consultants.
Authors Bio:-
About The Author
