Export u/s 10aa

This query is : Resolved

sanjaydutta (Querist)
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20 August 2011 Dear Sir,
If SEZ Unit sold goods to Domestic Tariff Area in India in Foreign Currency($),is it treated as an Export u/s 10AA?
Can the SEZ unit get Tax Exemption(U/s 10AA) on such Export?

Regards
Sanjoy Dutta

CA Chitta Ranjan Das

CA Chitta Ranjan Das (Expert)
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22 August 2011 If SEZ Unit sold goods in DTA in India in Foreign currency($), it is not treated as Export u/s 10AA.Because the condition no.5 for claiming deduction under aforesaid section says that the assessee must export goods or services out of Indian teritorry from SEZ by land, sea or Air by any other mode, whether physical or otherwise.

Hence, selling goods in India in foreign exchange is not complying with condition 5 and hence deduction u/s 10AA cannot be claimed.