AP VAT on SEZ Contractor from 01-04-2007 to 31-03-200

This query is : Resolved

SRIDHAR (Querist)
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08 March 2010 In Andhra Pradesh VAT Act, What is the SEZ Contractor Output tax liability for the period 01-04-2007 to 31-03-2009 and Input tax credit for the period 01-04-2007 to 31-03-2009 allowed or not please clarify.

K Bala Kishan

K Bala Kishan (Expert)
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08 March 2010 Purchases made with in the state of Andhra Pradesh for SEZ Units is exempted from payment of VAT----

With effect from 01-06-2008 in the state of Andhra Pradesh, Sale of goods to any unit located in SEZâ€.

"All goods sold to units, operator, Developer, Co-developer and Contractors engaged by them for use in processing area of the respective Special Economic Zone except the goods listed in rule 20(2) (a) of the Andhra Pradesh Value Added Tax Rules, 2005. (i.e. vehicles and all vehicle maintenance items and fuels related to vehicles)" is exempted for payment of VAT.

In case if we made local purchases against VAT payment, earlier we are eligible to claim input tax credit refund. Now claiming of VAT input tax credit is not eligible for SEZ Units incase if we make any local purchases with payment, VAT should be non-deductible.