For ARE1 do we have to create Bond ,they are having LOUT

[Former Member]

Hi all,

please tell me while creating ARE1 do i have to create bond,because here they are having LOUT but when creating ARE1 it is asking bond nos,

but the client is telling that they are not creating bond,

please help.

Regards,

sameer

[Former Member]

Hi,

Yes no bond is required for LOUT, Instead a letter of undertaking is given by the manufacturer-exporter to the board. All exports are then carried out under this letter of undertaking.

Cheers...

Santosh

[Former Member]

Hi Sameer,

I feel if u have letter of Undertaking then u don't need to create bond seperately.

Thanks

[Former Member]

hi sameer,

while doing ARE-1 when it is Letter of undertaking you have to select following steps

1) after opening first screen ie thru J1iA101 -

2)Select F6 (utilization) now under 4 options.

3) you have to select last ie LOU for your process.

regards,

K.S.Rao

[Former Member]

hi sameer

you have to select LOU in Excise invoice only sorry press F6 / utilization while creating excise invoice

[Former Member]

If the client is telling that they are not creating bonds then are they doing export under claim of rebate. Because in these 2 scenarios only ARE 1 document is created, Export under bond and export under claim of rebate.

Please get back to me, I can try to help you here.

Regards

AK

[Former Member]

Hi Ayub,

Thanks for your answer but I want to know that If the client is doing exports thru Leter of undertaking still they have to create Bond for ARE1.

[Former Member]

Letter of Undertaking:

A form of excise bond, as used in India.In most respects the letter of undertaking is the same as an excise bond. However, the letter of undertaking is not printed on stamp paper.

So as definition it is same excise bond but without stamp paper, thats why probably it is asking for bond. Try entering the LOUT number and see.

Regards

AK