Description:
In the light of the above discussion, the sales by the SEZ units to the DTA cannot be treated as deemed exports, since such an interpretation is not purported in the scheme of SEZ’s or the related enactments. Therefore, the sale of goods to the Domestic Tariff Area by the SEZ units attracts levy of VAT or CST, as the case may be.
Source:
Trade and Taxes. Volume no.18. Part no.6. June 2011. Page no. 292.
Our Comment
THE SALES MADE BY SEZ UNITS TO DTA IS TAXABLE UNDER VAT, CST AS THE CASE MAY BE. NOT EXEMPT SINCE SOLD BY SEZ.
1 Comment
Sirs,
If a DTA unit having duty free import license is eligible for exemption on Customs Duty, ED, VAT when they purchase goods from SEZ unit.
If any SEZ unit sales to Bonded warehouse is taxable under VAT.
Please give your suggestion.
Regards.
Yesudasan
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