IDT MCQ — Case Study: A domestic manufacturer supplies goods to an EOU. These supplies are treated as 'Deemed

**Case Study: A domestic manufacturer supplies goods to an EOU. These supplies are treated as 'Deemed Exports'. Can the manufacturer claim benefits under FTP?** A) No, benefits are only for physical exports. B) Yes, deemed exports are eligible for specified benefits under FTP. C) Yes, but only if the payment is in foreign currency. D) No, unless the EOU exports the final product within 30 days. ✅ **Answer: (B) Yes, deemed exports are eligible for specified benefits under FTP.** **Supplies to an EOU count as 'deemed exports' and do carry FTP benefits.** Under the Foreign Trade Policy, **deemed exports** are transactions where goods **do not leave the country** and payment is received in **Indian rupees or foreign exchange**, yet the supply is treated as an export because the goods are supplied to specified categories — including an **Export Oriented Unit (EOU)**. Because it is a recognised deemed export, the domestic manufacturer is **eligible for the specified deemed-export benefits** (such as Advance Authorisation/DFIA for inputs, deemed-export drawback, and refund of terminal excise duty/GST where applicable). It does not require the payment to be in foreign currency, nor is it denied merely because the goods stay in India, so the manufacturer **can claim the specified FTP benefits available to deemed exports**. _Practise 1000s more free CA Final MCQs 👉 https://conferenza.in/mcqs — and discuss your approach below._