Tax applicability for sale from sez to domestic area

This query is : Open

CMA Sumit Jain (Querist)
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05 February 2016 Hello,

A company manufactures goods in SEZ area and sold it to domestic market, in this situation what would be the of duties/taxes (Excise/Custom/VAT) applicability on the purchase of raw material and sale of the finish goods.

Thanks in advance!!

Regards
Sumit Jain

ANIL JANGID

ANIL JANGID (Expert)
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09 February 2016 Clearance from SEZ to DTA are to be in accordance with Section 30 of Special Economic Zones Act, 2005 which is as under:-

Section 30 Domestic clearance by Units.

Subject to the conditions specified in the rules made by the Central Government in this behalf:-

(a) any goods removed from a Special Economic Zone to the Domestic Tariff Area shall be chargeable to duties of customs including anti-dumping, countervailing and safeguard duties under the Customs Tariff Act, 1975, where applicable, as leviable on such goods when imported; and

(b) the rate of duty and tariff valuation, if any, applicable to goods removed from a Special Economic Zone shall be at the rate and tariff valuation in force as on the date of such removal, and where such date is not ascertainable, on the date of payment of duty.

CMA Sumit Jain

CMA Sumit Jain (Querist)
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10 February 2016 Thanks a lot sir,

Is the excise duty levy on the raw material purchase from DTA??

Regards
Sumit Jain

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