Letter of Undertaking

All registered tax payers who export the goods or services have to furnish Letter of Undertaking (LUT) in GST RFD-11. File with Taxxa.in. Prices Start at INR 1499/- only.

Rs. 1499 /- only
About LOU LOU Advantages Documents Required LOU Highlights LOU Process LOU Time Required

What is Letter of Undertaking?

A letter of undertaking is a written promise to fulfill an obligation or commitment. It is commonly used in business dealings and can be legally binding if certain criteria are met. The letter should include a description of the action to be taken, the date or timeline for completion, and a signature or acknowledgment of agreement.

What are the advantages of letter of undertaking?

 The advantages of a letter of undertaking include:

It provides evidence of a promise or agreement between two parties.

It helps to clarify a commitment or responsibility that one party has to another.

It serves to protect both parties in the event there is a dispute or misunderstanding in the future.

It provides a written record of the agreement, which helps to avoid any confusion or misinterpretation.

It can help to establish a good working relationship between the two parties.

What are the documents required for letter of undertaking?

The documents required for a letter of undertaking typically include a declaration of the undertaking, a signature block, and a witness block. Additionally, some legal jurisdictions may require the presence of a notary or other legal representative to certify the letter of undertaking.

Highlights

Highlights of Letter of Undertaking

 What is the letter of undertaking for an exporter?

 A letter of undertaking is a legal document that an exporter provides to a foreign buyer to assure them that the goods being sold will be delivered according to the terms of the purchase agreement. This document typically contains language that states that the exporter will deliver the goods within a certain time period and in accordance with certain specifications. Additionally, the letter of undertaking may include language that guarantees the payment terms — typically, payment upon receipt of the goods.

 What is the importance of letter of undertaking for an exporter?

 A letter of undertaking is important for an exporter because it serves as a written commitment from the exporter to the importer, often guaranteeing payment or product delivery. It is a form of protection for the importer, and it reinforces the trust that the importer has in the exporter. Additionally, it helps to establish a legally binding agreement between the exporter and the importer.

What are the documents required by an exporter for the letter of undertaking?

To register for a letter of undertaking, an exporter will need to provide the following documents:

  • Proof of identity of the exporter, such as a PAN card, Aadhaar card, voter ID card, etc.
  • Proof of address of the exporter, such as a valid passport, driver's license, electricity bill, etc.
  • Certificate of registration, if applicable, to show that the exporter is legally registered in the state or country where they are located.
  • Bank details, such as the name of the bank, account number, IFSC code, etc
  • Proof of export, such as a copy of the bill of lading, invoice, export contract, etc
  • Letter of undertaking, if any, from the buyer that the exporter will be paid for the goods exported.
 What is the step by step process of filling letter of undertaking under GST?

The process of filing Letter of Undertaking (LUT) under the Goods and Services Tax (GST) is as follows:

Step-1

  • The person who is liable to pay GST must obtain GST registration.
  • They must log into the GST portal and fill out the LUT form.

Step-2

  • They must attach the required documents such as identity proof, address proof, and PAN card.
  • Once the form and documents have been uploaded, the taxpayer must submit the form.

Step-3

  • The GST officer will verify the documents and approve the LUT.
  • The taxpayer will then receive an acknowledgement of approval of the LUT.
Time Required

Time Required for Letter of Undertaking

 How to furnish GST Letter of undertaking?

A GST Letter of Undertaking (LUT) is a legal document that allows a taxpayer to make certain exports without paying any GST. It is issued by the taxpayer to the jurisdictional Central or State Tax authority. The taxpayer must submit the required details along with the application for LUT. This includes basic information such as GSTIN, business address, contact details, and bank details. Once the LUT is approved, the taxpayer can export goods without paying any GST. However, taxpayers must periodically file a GST return and declare the exports made. Additionally, taxpayers must also deposit the due taxes with the government within the stipulated time.

What is the time required for letter of undertaking registration?

The exact time required for letter of undertaking registration depends on the specific requirements of the transaction. Generally, an online registration process may take a few days while an in-person registration may take a few weeks.

footer-service

Start a Business

Business Liecense

GST

Income Tax

TOOLS

© 2022 Tech and Tax Planner Pvt. Ltd.   All Rights Reserved.

Developed By : Inventive Infosoft | Creative Consultant: Efox Technologies