'Export-oriented units may transfer capital goods to other EOUs'

The procedure to transfer capital goods imported by one export oriented unit to another EOU

We are an export oriented unit (EOU). We want to transfer capital goods imported by us to another EOU. What is the procedure to be followed? Earlier, we used to follow bond-to-bond transfer procedure but after de-licensing of EOUs from bonded warehouse provisions, the procedure is not clear. Hence this query. 

As per Para 6.13 (b) of FTP, “capital goods may be transferred or given on loan to other EOU/EHTP/STP/BTP/SEZ units, with prior intimation to concerned DC and Customs authorities. Such transferred goods may also be returned by the second unit to the original unit in case of rejection or for any reason without payment of duty”. Also, as per Para 6.15 (a) (i) of FTP, “in case an EOU/EHTP/STP/BTP unit is unable to utilise goods and services, imported or procured from DTA, it may be transferred to another EOU/EHTP/STP/BTP/SEZ unit. Such transfer from EOU/EHTP/STP/BTP unit to another such unit would be treated as import for receiving unit.”

As per condition 4(b) of Para 1 of the notification 52/200-Cus dated March 31, 2003, “the unit may transfer capital goods or goods manufactured, produced, processed or packaged in that unit to any other unit in a SEZ, or other EOU or EHTP unit or STP unit, as the case may be, without payment of duty for the purpose of manufacture and export therefrom or for use within the unit after giving prior intimation to the said officer, subject to maintenance of proper accounts of removal and receipt of goods; such transferred goods may also be returned by the second unit to the original unit in case of rejection without payment of duty”.

My suggestion is that the receiving unit should debit the B-17 bond account, obtain a procurement certificate from the authorities and send it to you. Upon receipt of the procurement certificate, you may intimate the excise/customs officer in charge of your unit as well as jurisdictional development commissioner and send the goods to the receiving unit under cover of an invoice. The receiving unit should intimate receipt of the goods to you and his excise/customs officer in charge of his unit. 

I am selling books outside India online. Kindly advise me about the taxes applicable.

Books are not subject to excise duty or export duty. VAT/CST is also not applicable for goods exported. There is no income tax exemption for export of goods, unless you are a SEZ unit. 

Till recently, our Resident Welfare Association (RWA) was charging Rs 4,999 per month for its services for maintenance of common utilities and facilities in our colony. Now, the fees have been raised to Rs 6,000 per month. As there is exemption up to Rs 5,000 per month for such services, can we now collect service tax only on Rs 1,000, or do we have to collect service tax on the entire Rs 6,000?

CBEC Circular No. 175/1/2014-S.T., dated January 10, 2014 clarifies that in such cases service tax would be leviable on the aggregate amount of monthly contribution of members -- on the entire Rs 6,000.