Tax implications on sale from sez to dta

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Jitendra

Jitendra (Querist)
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11 May 2016 anyone can make article on tax implications on sale from sez to DTA?

Dr.RAMAKRISHNA. C

Dr.RAMAKRISHNA. C (Expert)
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18 August 2016 Dear Jitendra, according to Section 30 of the Special Economic Zones Act, 2005 any goods removed from a SEZ to the DTA shall be chargeable to duties of customs including anti-dumping, countervailing duty and safeguard duties under Customs Tariff Act,1975, where applicable, as leviable when imported; and the rate of duty and tariff valuation applicable to rules removed from a SEZ the date of importation into the country: and rate of duty and tariff valuation if any, applicable to goods removed from a SEZ shall be at the rate and Tariff valuation as on the date of such removal, and where such date is not ascertainable, on the date of payment of duty. However, if there is no excise duty on the goods in DTA cleared from SEZ, no countervailing duty charged. Similarly, if there is exemption on payment of VAT under the laws of the State Government, there is no need to pay Special CVD of 4% as per exemption Customs Notification No.45/2005 – Cus, dated: 2015.