25 May 2011
We are a trading firm at Delhi and have received a confirmed order from the unit situated in SEZ. The SEZ unit is exempted from paying CST on purchases from us. Now whether can we claim exepmtion under CST or DVAT on the supplies that will ultimately be sold to the SEZ unit as exempted sales. Meaning thereby that whether we can make exempted earmarked (for the SEZ unit only) purchases and then sell those earmarked exempted purchased goods to SEZ unit without charging any CST? The purpose sought to be achieved is not to pay CST/DVAT on the purchases and then not to charge CST on the sales to the SEZ Unit. Thanx in advance.
07 June 2011
SEZ units are entitled to procure goods without paying CST , They will issue you Form I for the Same. You should also be able to procure goods for SEZ without payment of CST/VAT that is against Form H . Now getting Form H from vat department is tricky and subjective question. VAT department will surely ask for Proof of Exports to issue Form H and they will put few conditions for this.
It is always better isteed of above you should go for refund or set off which is easier and less expensive.
CAclubindia
