Sale from trading company to sez unit
This query is : Resolved
23 July 2012
Can trading company sale the goods to SEZ unit? or only manufacturer can sale goods to SEZ unit?
Appreciate if you can give notification related to the same.
Appreciate if you can give notification related to the same.
23 July 2012
SEZ Units are free to import from the domestic sources without paying any duty on capital goods, raw materials, consumables, spare, packing materials, office equipment, DG sets, etc. for implementation of their project in the zone without any license or specific approval. Good which are imported duty free could be utilized over the approval period of 5 years.
Sales to DTA (Domestic Tariff Area) by SEZ units is always regarded as import and is subject to all normal import duties, including Countervailing Duty, SAD, etc.
SEZ Units are free from the periodic examination by Customs of export and import cargo.
SEZ units may sub-contract a part of their production through units in DTA/SEZ/EOU/EPZ with the permission of the customs authorities. Sub-contracting may also be permitted for processing abroad with the permission of the board of approval.
NOTED THAT:
DTA sales can be undertaken subject to achievement of positive NFE. Net Foreign Exchange (NFE) shall be calculated cumulatively for a period of 5 years from the commencement of commercial production.
For the purpose of calculation, the value of imported capital goods shall be amortized as follows -
1st – 2nd year: 5% each year.
3rd – 5th year: 10% each year.
6th – 8th year: 20% each year
Exemption from capital gains on transfer of an industrial unit from urban area to a SEZ.
Drawback or such other benefit as may be admissible from time to time on goods and services admitted from the DTA for setting up, operation and maintenance of units.
All exports from the DTA to the Zone shall be exempt from state and local body taxes or levies as (In some states, exports made to educational institutions, hospitals, hotels, residential and / or commercial complexes, leisure and entertainment facilities or any other facilities as may be notified by the state government are not exempt).
Developers of SEZs may import or procure goods from DTA without payment of duty for development, operation or maintenance of SEZ.
Exemption from Central Sales Tax (CST) on supply of goods from the DTA for development, operation and maintenance of SEZs.
FOR INFO:
http://www.eximkey.com/contents/showpage1.asp?pageid=1721
SEZ Units are free to import from the domestic sources without paying any duty on capital goods, raw materials, consumables, spare, packing materials, office equipment, DG sets, etc. for implementation of their project in the zone without any license or specific approval. Good which are imported duty free could be utilized over the approval period of 5 years.
Sales to DTA (Domestic Tariff Area) by SEZ units is always regarded as import and is subject to all normal import duties, including Countervailing Duty, SAD, etc.
SEZ Units are free from the periodic examination by Customs of export and import cargo.
SEZ units may sub-contract a part of their production through units in DTA/SEZ/EOU/EPZ with the permission of the customs authorities. Sub-contracting may also be permitted for processing abroad with the permission of the board of approval.
NOTED THAT:
DTA sales can be undertaken subject to achievement of positive NFE. Net Foreign Exchange (NFE) shall be calculated cumulatively for a period of 5 years from the commencement of commercial production.
For the purpose of calculation, the value of imported capital goods shall be amortized as follows -
1st – 2nd year: 5% each year.
3rd – 5th year: 10% each year.
6th – 8th year: 20% each year
Exemption from capital gains on transfer of an industrial unit from urban area to a SEZ.
Drawback or such other benefit as may be admissible from time to time on goods and services admitted from the DTA for setting up, operation and maintenance of units.
All exports from the DTA to the Zone shall be exempt from state and local body taxes or levies as (In some states, exports made to educational institutions, hospitals, hotels, residential and / or commercial complexes, leisure and entertainment facilities or any other facilities as may be notified by the state government are not exempt).
Developers of SEZs may import or procure goods from DTA without payment of duty for development, operation or maintenance of SEZ.
Exemption from Central Sales Tax (CST) on supply of goods from the DTA for development, operation and maintenance of SEZs.
FOR INFO:
http://www.eximkey.com/contents/showpage1.asp?pageid=1721
23 July 2012
Our customer, which is SEZ unit, wants to avail benefit of excise (under SEZ) and cst (under Form I).
can we supply the goods to them by procuring from our manufacturer.
or
Do we need to ask our customer to place order on manufacturer and avail the benefit of excise & cst.
can we supply the goods to them by procuring from our manufacturer.
or
Do we need to ask our customer to place order on manufacturer and avail the benefit of excise & cst.
23 July 2012
Trader can sale the goods to SEZ without payment of excise duty.
23 July 2012
In that case, if we procure material from our manufacturer without payment of excise duty, manufacturer must have to prepare invoice as:
Buyer - Trader (we)
Consignee - SEZ unit (our customer), kindly correct if i m wrong.
Also, to avail benefit of excise, consignee (SEZ) should give SEZ certificate to manufacturer and against which manufacturer will submit ARE-1 to SEZ, kindly correct if i m wrong.
Buyer - Trader (we)
Consignee - SEZ unit (our customer), kindly correct if i m wrong.
Also, to avail benefit of excise, consignee (SEZ) should give SEZ certificate to manufacturer and against which manufacturer will submit ARE-1 to SEZ, kindly correct if i m wrong.
23 July 2012
Yes you can and also without payment of Excise Duty as well as VAT
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