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Difference Between SEZ and EOU

SEZ units have physical control over movements of goods, no minimum investment limit, and are exempt from certain taxes. EOU units have a minimum investment requirement, restrictions on managerial remuneration, and must pay certain taxes but are eligible for refunds. The key differences are that SEZ units must be located in designated zones, have no restrictions on sales between units, and can retain 100% export earnings, while EOU units can be located anywhere, cannot sell between units, and can only retain 70% earnings.

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Sj Rao
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2K views

Difference Between SEZ and EOU

SEZ units have physical control over movements of goods, no minimum investment limit, and are exempt from certain taxes. EOU units have a minimum investment requirement, restrictions on managerial remuneration, and must pay certain taxes but are eligible for refunds. The key differences are that SEZ units must be located in designated zones, have no restrictions on sales between units, and can retain 100% export earnings, while EOU units can be located anywhere, cannot sell between units, and can only retain 70% earnings.

Uploaded by

Sj Rao
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PDF, TXT or read online on Scribd
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Difference between SEZ and EOU:SEZ Supply made from DTA to SEZ is Export.

SEZ there is physical control of over movements of goods. There is no minimum investment limit for SEZ. Restriction on managerial remuneration as per companies act is not applicable to SEZ Unit. SEZ need not paid CST or Service Tax. SEZ units can be set only in designated SEZ's SEZ units has to be new unit. No Conversion is allowed. Sale between SEZ Unit to SEZ Unit is permitted. DTA sales allowed on payment of full Duties Retention of 100% Export Earning in EEFC A/C (Exchange Earner's Foreign Currency (EEFC) Account) Duty free goods (except capital goods) to be utilised within a period of five years. EOU Supply made from DTA TO EOU is Deemed Export. There is no physical control over the movements of goods. There is minimum investment in P & M is Rs. 100Lakh on the date of commercial production. Restriction on managerial remuneration as per companies act is applicable to EOU Unit. EOU has to pay CST or Service Tax but eligible for refund. EOU can be set anywhere in India Running DTA unit can be converted into EOU Sale between EOU Unit to EOU Unit not permitted. DTA sales up to 50% of FOB Value Of Exports permitted on Concessional Rate of Duty Retention of 70% Export Earning In EEFC A/C Duty free goods (except capital goods) to be utilised within a period of three years.

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