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?
20 August 2011
The case mentioned herein is a very rare case. Becasue RBI never permits dealing with foreign exchange inside India. Suppose it happens, then it cannot be said as export. Because as per condition 05 of Sec.10AA, the export means selling goods or services out of India from the SEZ by Land, sea, air or by any other mode.
Hence, selling inside India is not elligible for deduction u/s 10AA.
CAclubindia
