Sez

This query is : Open

BAJAJ JAGDISHKUMAR LALCHAND (Querist)
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12 February 2016 I AM DEALER / SELLER OF VENDING MACHINE AND DIFFERENT TYPE OF TEA AND COFFEE FLAVOURS- LIKE MANGO TEA, ETC.SOLD TO TATA CONSULTANCY SERVICE LTD GANDHINAGAR WHICH IS LOCATED IN SPECIAL ECONOMIC ZONE (SEZ UNIT) AND HAVING ELIGIBILITY CERTIFICATE. HERE MY QUESTION IS THAT THEY DEMANDING ZERO VAT SALE BILL OR SAY DONT CHARGE VAT ON TEA AND CONFEE FLAVOUR BECAUSE OUR UNIT IS SEZ UNIT. HERE MY QUESTION IS THAT IT IS NOT PURCHASE OF THE UNIT. UNIT IS ELIGIBLE FOR EXEMPTION FROM PAYMENT OF SALES TAX (VAT) AND OTHER TAXES FOR PURCHASE OF GOODS . IT IS EXPENDITURE OF THE COMPANYAND NOT OF THE PURCHASE. TEA COFFEE IS USED FOR STAFF WELFARE. SO IT IS NOT PURCHASE. HERE WHAT IS INGREDIENT, TEA AND COFFEE IS USE FOR SELF NOT FOR RESALE, SO HERE CAN I DO SO. CHARGE ZERO VAT ON SALE AND CLAIM ITC AS REFUND. IT WILLBE CORRECT.
PL. GUIDE US.

CA. Hari Kishan

CA. Hari Kishan (Expert)
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13 February 2016 The exemption is for the SEZ. All dealers selling goods to a SEZ unit are required to charge VAT in the tax invoice and later the SEZ shall make application for refund of the eligible inputs.

BAJAJ JAGDISHKUMAR LALCHAND

BAJAJ JAGDISHKUMAR LALCHAND (Querist)
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26 February 2016 i am selling tea and coffee in different flavour to SEZ unit who use this for own consumption or say used for his workers/ stafff. tea and coffee is not goods ( raw material ) of SEZ unit.. my question is whatever sale to SEZ is tax free or say exempt from vat tax

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