Sales to SEZ unit: MERCHANT EXPORT? OR ACTUAL EXPORT?

This query is : Open

Dipen (Querist)
Follow

02 August 2010 A company sells goods to SEZ Unit. Law says sell to SEZ unit is export of the supplier under SEZ act, Excise act and in Custom act.

But will that would be MERCHANT EXPORT of supplier company or would it be Actual Export of supplier.

I am confuse between Merchant Export and Export.

Please provide me the legal definition, if any, of Merchant export and export.

Many thanks for investing your valuable time to my query.

VINOD ARORA

VINOD ARORA (Expert)
Follow

02 August 2010 Supplies from Domestic Tariff Area (DTA) to SEZ are treated as physical export. DTA supplier would be entitled to :

Drawback/DEPB
CST Exemption
Exemption from State Levies
Discharge of EP if any on the suppliers
Income Tax benefit as applicable to physical export under section 80 HHC of the Income Tax Act.

Please explain your purpose of using the word merchant export in this context.

Message likes : 1 times

Dipen

Dipen (Querist)
Follow

04 August 2010 Vinodsir,

I have KVIC (Khadi and Village Industries Unit) KVIC ppl says they will not accept merchant export.

KVIC ppl say selling goods to SEZ unit will be Merchant Export. I havent done merchant export thats why I didn't know what is merchant export.

I totaly disagree with KVIC ppl but I don't know how to prove it. Thats why I wanted legal definition of Merchant export.

Please help me out if you have any knowledge of merchant export.

Thanks for your precious time invested in query.

Upgrade to CAclubindia Pro. Subscribe Now!