Friday, July 10, 2009

Benefits of EHTP Scheme

Benefits of EHTP Scheme

  • Income Tax holiday as per section 10A of the IT Act
  • An EHTP may import free of duty capital goods, raw materials, components and other related inputs. Second hand capital goods may also be imported by EHTP units
  • An EHTP may gear up to 100 per cent foreign equity
  • Supplies that are effected in DTAs under global tender conditions and payment in forex are also considered as part of relinquishment of export obligation
  • An EHTP unit may be setup for both software and hardware in an integrated manner
  • EHTP unit may purchase indigenous goods free of excise duty
  • EHTP unit may sell Goods/Services in DTA up to 50% of FOB value of exports, subject to fulfillment of positive NFE as per the policy & payment of applicable duties

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