Sez benefits

This query is : Resolved

Chandan Babu Gupta (Querist)
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22 May 2015 Can anyone tell me whether sez benefits( like exemption of excise duty as well as CST) available for contractor or sub contractor for carrying out any work in the sez area

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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23 May 2015 Exemption from Customs and Excise duty to SEZ Developer and unit is also available to their contractor and sub-contractors under “Bill to –ship to arrangement”.

CST is exempt on inter-state procurement of goods by SEZ Developer or unit against Form I specified under Section 8 of CST Act, 1956. Exemption from Service tax is also not available to contractor and sub-contractors engaged by SEZ developer / unit.

There is no special Notification for exemption from Excise duty and Customs duty for SEZ either under Central Excise law or Customs law. Exemption from duties is in terms of provisions of SEZ Act.