CA KSB (Asst Manager) (105 Points)
17 May 2013Dear Members,
Please help in the below query.
Sales made to buyer in non SEZ area. He requested to deliver the material to his customer located in SEZ. Can we take a stand that CST need not be collected as the goods are directly dispatched to SEZ and consumed for the approved purpose wholly in SEZ.
Thank you in advance...
MJ Krishnamurthy
(ACCT(Retd))
(7197 Points)
Replied 17 May 2013
This issue is a bit doubtful. Sub sec 6 of Sec8 of CST Act 56 allows exemption on sales made to aunit located in a special economic zone. But, here you are selling to another dealer who is not in SEZ. He may, on the way, sell by transferring the documents to his customer of SEZ. An E1 sale can be done,but, the provisions of Sec8(6) do not apply. Therefore, you have to charge CST as per rules in the invoice....mjk
CA KSB
(Asst Manager)
(105 Points)
Replied 18 September 2013
CAclubindia
